The Roadster Is Tesla and Elon Musk’s New Cash Machine
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There is no doubt that Tesla (TSLA) – Get Tesla Inc Report dominates the electric-vehicle market.
The Austin automaker produced 305,407 vehicles in the first quarter and deliver 310,048 despite supply-chain disruptions and Russia’s invasion of Ukraine, which worsened soaring raw-materials prices like nickel.
Chief Executive Elon Musk’s group should exceed one million vehicles produced in 2022, industry sources anticipate. That would be a record for the company.
Meanwhile, GM (GM) – Get General Motors Company Report and Ford (F) – Get Ford Motor Company Report between them delivered a bit more than 7,100 EVs in the first quarter. Upstart rival Rivian (RIVN) – Get Rivian Automotive, Inc. Class A Report for its part delivered 1,227 vehicles in the first three months.
Tesla is well positioned to meet the growing demand for electric vehicles. The automaker has just opened its fourth production plant, in Austin, after Berlin, Shanghai and Fremont, Calif. In all, these factories can together manufacture at least 2 million vehicles per year when they are operating at full capacity.
Tesla, whose declared mission is to save the planet from pollution, is thus to likely generate significant revenue in the next few years because the group can now serve important markets such as China, Europe and the U.S. at much lower cost than its competitors face.
Tesla Has Access to Free Money
Musk’s firm also is able to generate significant revenue on models that it has not yet marketed. The T-brand currently sells the Model S luxury and entry-level Model 3 sedans, the Model X luxury SUV and the Model Y SUV.
The CEO on April 7 indicated that 2023 will be a year rich in new products: Tesla will start production of the highly anticipated cybertruck, the Tesla Semi and also the Roadster sports car. The brand is already taking reservations for all these vehicles.
But one of the three turns out to be a real cash machine for Tesla. It’s the new Roadster.
The new generation of the Roadster, the very first vehicle manufactured by Tesla, seems to be a big success. The limited edition, Founders Series, is sold out. Tesla stopped taking reservations in December.
For this limited model, Tesla customers had to pay the full price, $250,000, within 10 days of placing their orders on the dedicated Roadster site.
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Musk had indicated that Tesla planned to produce only 1,000 units of the Founders Series. Based on the initial price, the company pocketed $250 million in revenue from a vehicle that has not even entered production.
Now that the Founders Series is spoken for, interested consumers have only one choice: the standard Roadster. Tesla generally displays prices for its vehicles — but not this one. Last year, the Roadster price was showing up at $200,000, and potential customers had to put down a deposit of $45,000 within 10 days of placing their orders. But the required deposit has increased.
A Super Fast and Expensive Sports Car
Now Tesla demands a base reservation of $50,000 within 10 days of the order. This is done in two parts: the customer deposits $5,000 when placing the order and must pay an additional $45,000 within 10 days of placing the order.
“Roadster reservations require an initial $5,000 credit card payment, plus a $45,000 wire transfer payment due in 10 days,” the carmaker says. “Reservations are not final until the wire transfer payment is received.”
Unveiled in 2017, and originally scheduled for 2020, the sports car has been postponed many times. Musk said on April 7 that Tesla will start manufacturing the new Roadster in 2023.
While the first version of the Roadster, which marked Tesla’s debut, was based on the Lotus Elise, this new version has completely new bases.
Inspired by the brand’s models, it seems larger than its predecessor; the size seems close to the Tesla Model S, with which it could share the chassis. Configured in 2+2, the Roadster has a removable glass roof.
In terms of performance, the manufacturer says it can beat the best supercars with a 0-to-60 mph (100 kph) shot in less than two seconds and a 0-100 mph in 4.2 seconds. The maximum speed for the new Roadster: 250 mph.
The Roadster is “the quickest car in the world, with record-setting acceleration, range and performance,” Tesla says.
The new generation of Roadster has up to 620 miles, nearly 1.000 kilometers. of range.
In terms of recharging, Tesla hasn’t yet provided many details. But owners can expect the new Roadster to be able to access the future MegaCharger network that the manufacturer intends to deploy for its future Tesla Semi.
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