Join us at TNW Conference 2022 for insights into the future of tech →

The heart of tech

This article was published on August 10, 2015

Tesla is losing over $4,000 on each car it sells, but Musk says affordable Model E is still on the way

Tesla is losing over $4,000 on each car it sells, but Musk says affordable Model E is still on the way
Amanda Connolly
Story by

Amanda Connolly

Reporter

Amanda Connolly is a reporter for The Next Web, currently based in London. Originally from Ireland, Amanda previously worked in press and ed Amanda Connolly is a reporter for The Next Web, currently based in London. Originally from Ireland, Amanda previously worked in press and editorial at the Web Summit. She’s interested in all things tech, with a particular fondness for lifestyle and creative tech and the spaces where these intersect. Twitter

Tesla is losing over  $4,000 on every sale it makes of its Model S car, according to a report on its most recent financials by Reuters. That brings the loss between April and June of this year to a whopping $359 million.

In response to this, the car manufacturer has been forced to cut its production budget for 2015-2016. However, the company’s founder Elon Musk has promised investors that by the first quarter of next year, his company will have made enough money to move into the mass production of its affordable Model E, which is expected to cost approximately $35,000.

It’s an ambitious deadline and it will certainly be interesting to see if Musk can stick to it.

The company went public in 2010 and has since branched out to expand on its auto and energy saving business. Looking at shares, which have fallen in the past week with news of the losses, it seems like investors are starting to question the viability of Musk’s ambitious plans.

One option to save some cash would be to sell off more shares, but it’s not clear if Musk is willing to do that just yet.

➤ Tesla burns cash, loses more than $4,000 on every car sold [Reuters]

Read next: Tesla unveils its mesmerizing car-charging snake because you didn’t want a Model S already

Also tagged with