Can Tesla Survive?

[OKIsItJustMe]

http://www.technologyreview.com/energy/39734/?mod=chfeatured

[font face=Times,Times New Roman,Serif][font size=5]Can Tesla Survive?[/font]
[font size=4]As major automakers turn their attention to electric cars, the company faces serious challenges.[/font]

Thursday, February 16, 2012 | By Kevin Bullis

[font size=3]The year 2012 will be an important one for Tesla Motors. Amid growing competition from established automakers, Tesla plans to sell a new Model S luxury sedan in July, and to supply Toyota with batteries, motors, and control systems for a new electric RAV4 SUV. Yesterday it announced a similar deal with Daimler for a new electric Mercedes-Benz. The success of these efforts could determine whether the company survives long-term—and what it might look like if it does.

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Tesla is best known for its electric sports car, the Roadster. But from its early days, the company has hoped to move beyond the Roadster to lower-priced electric vehicles sold in much higher volumes. Earlier this week, Tesla revealed a luxury electric SUV, the Model X, which it plans to sell starting in 2013.

But the automotive industry has changed dramatically since Tesla was founded in 2003. At the time, changes to a California mandate that had required carmakers to make electric cars had just led GM to cancel the electric EV1, and Toyota to cancel the original electric RAV4. By and large, Tesla had the electric vehicle market to itself, its only competition coming from a handful of other small electric car companies.

Now, GM, Nissan, and others are selling electric vehicles in numbers that after one year far exceed the total production of the EV1. In fact, every major automaker has announced plans to sell electric cars of some type. Furthermore, vehicles from companies including BMW and Mercedes will compete directly with Tesla in the market for high-performance or luxury electric vehicles.

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[demosincebirth]

1. It won't survive unless they built one that the average consumer can buy.

[kristopher]

2. Ford, Lincoln, Mercury, Tesla?

The Tesla Division of General Motors?

Sounds like an eventual probable outcome to me.

[OKIsItJustMe]

5. Maybe

On the other hand, a buyout can also mean death. (How’s Saab doing lately?)

[stlsaxman]

3. Neiman-Marcus survives, Hammecher-Schlemmer survives... why not Tesla? n/t

[Firebrand Gary]

4. If there is ANYONE who can pull this off its Elon Musk.

No doubt about it. The man is brilliant.

[wtmusic]

6. In a year or two they will likely be subsumed by Toyota

who already has a partnership with them.

What they've been able to accomplish with six thousand camera batteries is amazing, but to play in the big leagues they'll need a few extra $billion of market cap.