REPORT: Tesla to get funding from an unnamed automaker?
Click above for a high-res gallery of the Tesla Model S
Now that we've all gotten a good look at the Tesla Model S (click here if you've been in a coma the last 24 hours), the next big question is whether it will ever get built. To be sure, the Silicon Valley automaker has some investors with deep pockets, including company head Elon Musk, but Tesla's future clearly depends on its ability to get enough funding to pull off the nearly impossible task of a.) getting a factory built and b.) putting its fully electric sedan into thousands of garages all across the country. Where could that investment money come from?
The biggest question is how much (if any) money Tesla will get from the U.S. Department of Energy. Last month, Tesla revealed that it was expecting to get approved for up to $350 million in low interest loans from the DOE, but that application has not yet been approved. Interestingly, Financial Times is saying that Tesla is "already weighing offers of big investments from unnamed auto companies and two sovereign investors."
We're not certain what auto companies this might refer to, but we imagine it could possibly come from an automaker with a vested interest in seeing Tesla continue to produce the Roadster, make the Model S a reality or even keep its lithium ion battery units available for purchase. Any thoughts?
Gallery: Tesla Model S: LIVE REVEAL
Gallery: Tesla Model S
[Source: Financial Times]
Reader Comments (Page 1 of 1)
why not the LS2LS7? 2:13PM (3/27/2009)
Having this pump-and-dump style rumor crap floating around Tesla doesn't do anything to make them seem more like a stable company.
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Tohe 3:48PM (3/27/2009)
Amen
Chris M 11:04PM (3/27/2009)
Considering that Tesla is privately held, with no public stock offerings, means that there can't be any stock "pump & dump".
Of course, rumors and urban legends get started even without any profit motive.
why not the LS2LS7? 12:00AM (3/28/2009)
If a company has stock, it can be pumped and dumped. Tesla is private, but shares do exist.
But I said pump and dump "style" for a reason. It isn't certain these rumors are there for the purpose of directly manipulating the stock value, but it is possible. It may be for other reasons, such as to encourage people to pre-order Model S and fill the coffers of Tesla for the hard times ahead.
tankd0g 10:01AM (3/30/2009)
Everyone seems awfully eager to have the DOE recoup Elon's shitty investment for him.
Chris 2:23PM (3/27/2009)
I could imagine, that it would be Daimler. As you guys mentioned with the lithium ion battery units available. Tesla delivers 2000 battery units to Daimler for their Smart-EVs.
Another point is the Joint Venture from Tesla with Evonik. Daimler is also working with Evonik's Li-Tec brand to develop batteries for EVs. And the third point is the recent several billion Euro investment of an Abu Dhabi investment group into Daimler. That gave Daimler some cash, that they wanted to use for electric car development.
Imho if that would be true, it would be beneficial for both sides. Daimler could really get Tesla on track with the car production. Working together would also cut down development costs and Tesla could profit from Daimlers "army of engineers". For Daimler it would surely be beneficial as well, they would profit from Teslas "clean" image and their drivetrains.
Tesla has a head start on EVs, but if they can't ramp up their production fast enough, the big car-companies will roll over them with their EVs. Renault will have one ready at about the same time as the Model S is coming to market. If Tesla is not competitive with their production by then, they will be stuck in a niche market and will be really vulnerable to go out of business.
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Throwback 2:38PM (3/27/2009)
It would have to be a car company with some extra cash. Not many of those around, but Daimler makes sense. What about a Chinese company? they could then have access to Tesla's battery tech.
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BlackbirdHighway 2:57PM (3/27/2009)
Porsche made an enormous amount of cash last year in the stock market when pulled off a successful short squeeze on VW stock. They made about 10 times more pure profit on that deal than the entire revenue they took in from selling cars.
So with all that cash, I would say they are the most likely potential investors. Could also be Daimler or BMW, but I'm betting on Porsche. Toyota and Honda are very long shots.
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dill pickle 3:31PM (3/27/2009)
Tesla doesn't have battery tech. They use laptop batteries in series. They DO have some expertise having to do with battery cooling, packaging, etc.
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Chris 3:35PM (3/27/2009)
I'm not sure about that Porsche idea. They defiantly have the cash, but I don't think they have the need of investing it into another company. I think they rather spend it to increase their share in VW. Porsche & VW have already a huge market share and the capability of growing on their own. I think they would be able to get through that crisis better than most other companies and make the technology shift without any help. Tesla would also not be a good match for Porsche, since the Roadster is competing with the Boxter and the Model S will be competing with the upcoming Panamera.
Toyota is similar, they are just to big, to have the need for that kind of deal. I think before investing into Tesla they would just start their own EV-Brand.
About the Chinese... hmm... I could imagine, that they would do such a thing, they need to increase their market share and their image when it comes to quality. Through their government they might have the cash. For Tesla the deal sounds less attractive then others, since they would only profit from the cash. Technology wise it wouldn't create the big opportunities other deals might offer.
I think we can rule out the Detroit companies, for the lack of cash. Renault-Nissan is unlikely since they are supposed to be quite far with their own program. Peugeot is already partnering with Mitsubishi on the EV issue. Fiat probably won't have the cash, BMW either. Tata is, as I heard, also in trouble financially and unlikely to invest. Honda is betting on Hybrids as well a Toyota.
My list of probable investors:
1. Daimler sounds to me the most likely, since they have A) the money and B) the need for a cooperation.
2. Some Chinese have perhaps the money and perhaps the need, but no help technology wise.
3. Porsche has the money but not the need.
4. Toyota could have the money, but not the need.
Did I forget some company, that is likly to be involved?
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Andrew*Debbie 4:18AM (3/31/2009)
>>Did I forget some company, that is likly to be involved?
Yes you did. See my comment 17.
Gabe 4:11PM (3/27/2009)
I hate to be that guy, but you cannot have a vested interest in something unless you've made an investment in it already. Words mean meanings, sometimes.
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Lad 5:46PM (3/27/2009)
TMC has solved many of the problems associated with bringing BEVs to market except the mass production process. Their best move is to partner with a company that can re-engineer their products to produce BEVs for the mass market, i.e., a $20,000 car with 0-60 about 7 seconds, and a 300 mile range. At this time they are positioned at the high end of the market and they need to move their products down scale. I don't understand why they want to build a new plant in San Jose; aren't there auto plants and trained production workers begging for buyers in other parts of the U.S? Seems to me that TMC needs to decide if they desire to build and sell autos on the mass market or remain in the niche part of the market; when the other companies introduce their cars, competition will be a frieze. Kind of a repeat of the old Apple Mac/P.C. story when Apple didn't move fast enough.
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vfx 10:11PM (3/27/2009)
Elon recently said the GE was the second biggest investor in the next round next to him.
http://www.teslamotorsclub.com/news-articles-events/2473-elons-long-days-nights-may-09-c-d.html?highlight=Huge+news
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Rain 1:33AM (3/28/2009)
My pick at the shot-in-the-dark guessing game;
Ratan N Tata.
He seems to have a huge reserve of cash at hand and has shown a penchant
for upscale marque's while mass producing vehicles for the masses.
The company seems to delight in thumbing its collective nose at the Saud's
and would benefit if the Big 3 were to go the same way as their obsolescent cars
and profit from a huge debut in the American economy car market.
I would love to see an Indica-EV platform built with AC Propulsions' Technology,
this could be the stage three Tesla for around $30,000 U.S. Dollars.
Daimler would also be a good bet with its Abu Dahbi connections,as They try to corner a market displaced by EV's.
Also look for the Middle East to try to monopolize the power grid just the same way they did with oil.
Lets just hope We learn from the past World Wars that were successfully implemented to secure market dominance.
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Graham 4:24AM (3/28/2009)
Sovereign Investors!!!
Alarm Bells ringing!!!
That would be the Arab states, Norway, Brunei. All managing soverign funds off the back of oil revenues. Should be a good chance to kick this electric power into the long grass for another decade!
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BoneHeadOtto 2:47PM (3/28/2009)
well obviously if it is an automaker providing the funding it has to be porsche. The only company actually doing well. Plus the Tesla S is what the panamera should have looked like.
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Andrew*Debbie 7:29AM (3/30/2009)
An automaker with a vested interest in seeing Tesla continue to produce the Roadster would be PROTON.
Proton owns a controlling share of Group Lotus, who build a good portion of the Roadster for Telsa.
Proton also has a Partnership with Detroit Electric. Gives Proton a reason to see someone else using LiIon batteries.
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mpgomatic 8:57AM (3/30/2009)
Bingo, Andrew*Debbie ... I'll drop my two dollar bet on Proton/Lotus.