Tesla Motors raising another $40M to launch Roadster

**mgescuro** · 12-21-2007, 08:07 PM

Tesla Motors raising another $40M to launch Roadster

Tesla Motors Inc. is reportedly raising $40 million in new funds to help it get its electric Roadster to a limited amount of customers in the first quarter of 2008.

The San Carlos company's Chairman Elon Musk told the Earth2Tech online site that the money is coming from him and other current investors.
The company has already raised over $100 million in funding.

Musk said the money is needed to help overcome a snag in the car's transmission, requiring it to find a new supplier. The first cars are now expected to have an interim transmission, which the company will swap out for another transmission later.

http://www.bizjournals.com/sanfranci...=et78&ana=e_du

crooner214 · 12-21-2007, 08:22 PM

Hmmm...I don't know how happy I'd be with an "interim" tranny. Maybe they will be willing to replace these transmissions with thoroughly and properly tested ones. For how much the roadsters will cost, they better make sure their customers are happy.

THE_SMURF · 12-21-2007, 08:27 PM

Quote:

Originally Posted by mgescuro

Tesla Motors raising another $40M to launch Roadster

Tesla Motors Inc. is reportedly raising $40 million in new funds to help it get its electric Roadster to a limited amount of customers in the first quarter of 2008.

The San Carlos company's Chairman Elon Musk told the Earth2Tech online site that the money is coming from him and other current investors.
The company has already raised over $100 million in funding.

Musk said the money is needed to help overcome a snag in the car's transmission, requiring it to find a new supplier. The first cars are now expected to have an interim transmission, which the company will swap out for another transmission later.

http://www.bizjournals.com/sanfranci...=et78&ana=e_du

I fear this is a still born brand.

zete · 12-21-2007, 08:46 PM

So much for all the hype claiming Tesla can do what Detroit can't. It seems building it is a tad harder than they anticipated.

And this release of what is, effectively, a beta version of the product to test on the consumer is not a good idea. I know folks in Silicon Valley love this "Beta" crap, but in a car it's not a good idea. They're going to miss their deadline so they're going to throw something out so they can claim they released it. I wouldn't want to be driving in or near this thing with an interim transmission.

There's more info at TechCrunch, including this tidbit:

"It will still be safe, but it won’t have the performance characteristics that we promised. And there may be some durability issues, not something that is made to last 10 years, but it should be fine for several months."

Can you imagine of GM or Toyota or Ford released a product and said that last line? Can you see some automaker honcho saying, "Oh, our new fangled veehicuuule may have some durability issues, but it should be fine for several months."

Treating this as if it was software is a bad precedent. More from Musk: "All the crash tests and safety tests are done. One might think of this as a public beta, if it were software." Yeah, but Windows won't kill you if something goes sideways.

I'm a tad perplexed. I thought you had to actually do the safety/crash tests on a production version of the car? Since no production version exists -- and they so admit -- how can they claim it's safe or that it passed crash tests?

BTW, he's CEO #3.

PocoToro · 12-21-2007, 09:13 PM

Tesla is also on its third CEO.

I love this statement. They have had more CEO's than they have sold cars.

**ChevroletRevived** · 12-21-2007, 09:26 PM

Man, they're running into LOTS of problems with the Roadster. Making something revolutionary is not as easy as everyone thinks, obviously.

Butz · 12-21-2007, 09:29 PM

I'm disappointed in Tesla, I thought they could really pull it of, but the couldn't.

Chaz_23 · 12-21-2007, 09:47 PM

So there's brilliant business folk at Vultures-Are-Us who don't have a clue what to do with Chrylser and now Silicon Valley geniuses who are at a loss. Maybe this whole buiding cars thing ain't all that easy, huh? Ivy league degrees and all...

WishIhadatruck · 12-21-2007, 09:55 PM

It does seem hard to believe they are going to release cars with unreliable transmissions. I suppose they figure if they delay things too many more months people will start to cancel orders and the whole company will go under. Hopefully the new transmission is available quickly before people have problems. Most buyers probably figure they are buying a beta type vehicle anyway. There is already an expectation it won't be as reliable as a regular car, especially with regard to battery life. It is just being bought by rich people that want the novelty of it. This beta launch might not bother them as much as having no car at all. Who knows.

Butz · 12-21-2007, 10:10 PM

Quote:

Originally Posted by WishIhadatruck

It does seem hard to believe they are going to release cars with unreliable transmissions. I suppose they figure if they delay things too many more months people will start to cancel orders and the whole company will go under. Hopefully the new transmission is available quickly before people have problems. Most buyers probably figure they are buying a beta type vehicle anyway. There is already an expectation it won't be as reliable as a regular car, especially with regard to battery life. It is just being bought by rich people that want the novelty of it. This beta launch might not bother them as much as having no car at all. Who knows.

You can download an update for the transmission

Ambalanche · 12-21-2007, 10:18 PM

Quote:

Originally Posted by Butz

You can download an update for the transmission

You ain't right! lol

TimR · 12-21-2007, 10:32 PM

Quote:

Originally Posted by Chaz_23

Maybe this whole building cars thing ain't all that easy, huh?

To listen to people online, including on these forums, its very easy to build great cars with all the new technology out there, what could be so hard??

MechEng · 12-21-2007, 11:00 PM

Quote:

Originally Posted by TimR

To listen to people online, including on these forums, its very easy to build great cars with all the new technology out there, what could be so hard??

Well, it really isn't that hard. But it does take a lot of work and resources to build a technically revolutonary car. Something a company like GM can do when they put their mind too it. But something that is very difficult for a start up like Tesla. Tesla still has a long way to go. I can only imagine the problems they might encounter when they finally start building cars.

ctaylorzl1 · 12-21-2007, 11:13 PM

Quote:

Originally Posted by THE_SMURF

I fear this is a still born brand.

We can only hope!!! I am not impresses by TM in the least little bit!
If i am not mistaken Time Magazine gave them a "best invention" award in 2006, 2 years later they have yet to produce a car for the public. And it sounds like they need another 40M to go before they do! Its just a fad for green celebrities to gush about.

FStephenMasek · 12-22-2007, 12:26 AM

I wonder how many will wreck when the "interim" transmission blows up?

12-21-2007, 08:07 PM	#1 (permalink)
mgescuro GMI Staff Member Join Date: Jan 2003 Location: San Francisco Bay Area Posts: 24,356	Tesla Motors raising another $40M to launch Roadster Tesla Motors raising another $40M to launch Roadster Tesla Motors Inc. is reportedly raising $40 million in new funds to help it get its electric Roadster to a limited amount of customers in the first quarter of 2008. The San Carlos company's Chairman Elon Musk told the Earth2Tech online site that the money is coming from him and other current investors. The company has already raised over $100 million in funding. Musk said the money is needed to help overcome a snag in the car's transmission, requiring it to find a new supplier. The first cars are now expected to have an interim transmission, which the company will swap out for another transmission later. http://www.bizjournals.com/sanfranci...=et78&ana=e_du __________________ 2000 Saab 9-5 Aero 1995 Mercedes C280 1994 Jaguar XJ6 ...when all hope is gone, you know sad songs say so much... My Vision of Cadillac My Vision of Cadillac (REDUX) Last edited by mgescuro : 12-21-2007 at 08:10 PM.

12-21-2007, 08:22 PM	#2 (permalink)
crooner214 3.8 Liter Supercharged V6 Join Date: Jun 2005 Location: Seattle Drives: 1993 K- Blazer 4x4 Police Posts: 687	Re: Tesla Motors raising another $40M to launch Roadster Hmmm...I don't know how happy I'd be with an "interim" tranny. Maybe they will be willing to replace these transmissions with thoroughly and properly tested ones. For how much the roadsters will cost, they better make sure their customers are happy.

12-21-2007, 08:46 PM	#4 (permalink)
zete 5.3 Liter LS4 V8 Join Date: Dec 2005 Location: NCR, Great White North Posts: 3,581	Re: Tesla Motors raising another $40M to launch Roadster So much for all the hype claiming Tesla can do what Detroit can't. It seems building it is a tad harder than they anticipated. And this release of what is, effectively, a beta version of the product to test on the consumer is not a good idea. I know folks in Silicon Valley love this "Beta" crap, but in a car it's not a good idea. They're going to miss their deadline so they're going to throw something out so they can claim they released it. I wouldn't want to be driving in or near this thing with an interim transmission. There's more info at TechCrunch, including this tidbit: "It will still be safe, but it won’t have the performance characteristics that we promised. And there may be some durability issues, not something that is made to last 10 years, but it should be fine for several months." Can you imagine of GM or Toyota or Ford released a product and said that last line? Can you see some automaker honcho saying, "Oh, our new fangled veehicuuule may have some durability issues, but it should be fine for several months." Treating this as if it was software is a bad precedent. More from Musk: "All the crash tests and safety tests are done. One might think of this as a public beta, if it were software." Yeah, but Windows won't kill you if something goes sideways. I'm a tad perplexed. I thought you had to actually do the safety/crash tests on a production version of the car? Since no production version exists -- and they so admit -- how can they claim it's safe or that it passed crash tests? BTW, he's CEO #3. Last edited by zete : 12-21-2007 at 08:50 PM.

12-21-2007, 09:13 PM	#5 (permalink)
PocoToro 3.8 Liter V6 Join Date: Jul 2006 Drives: '04 SSR 5.3L Posts: 480	Re: Tesla Motors raising another $40M to launch Roadster Tesla is also on its third CEO. I love this statement. They have had more CEO's than they have sold cars. __________________ The Volt is a total electric car with a "range extender" Remove ICE, add more/better battery's and you have the EV-2 "We Probably Could Have Saved Ourselves, But We Were Too Damned Lazy To Try Very Hard......And Too Damn Cheap" Kurt Vonnegut

12-21-2007, 09:26 PM	#6 (permalink)
ChevroletRevived GMI Staff Member Join Date: Jul 2004 Location: The Good Ol United States of America Posts: 8,863	Re: Tesla Motors raising another $40M to launch Roadster Man, they're running into LOTS of problems with the Roadster. Making something revolutionary is not as easy as everyone thinks, obviously. __________________ GMI's Revitalization in Action Director Check out our latest lineup by Clicking Here If you've got inside news and would like to be a GMInsider, send me a private message or email me HERE.

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12-21-2007, 09:47 PM	#8 (permalink)
Chaz_23 6.0 Liter Vortec V8 Join Date: Jan 2007 Posts: 1,789	Re: Tesla Motors raising another $40M to launch Roadster So there's brilliant business folk at Vultures-Are-Us who don't have a clue what to do with Chrylser and now Silicon Valley geniuses who are at a loss. Maybe this whole buiding cars thing ain't all that easy, huh? Ivy league degrees and all...

12-21-2007, 09:55 PM	#9 (permalink)
WishIhadatruck 5.3 Liter Vortec V8 Join Date: Jul 2005 Location: Grand Rapids, MI Drives: '01 Grand Prix GT '96 Roadmaster Wagon Posts: 1,406	Re: Tesla Motors raising another $40M to launch Roadster It does seem hard to believe they are going to release cars with unreliable transmissions. I suppose they figure if they delay things too many more months people will start to cancel orders and the whole company will go under. Hopefully the new transmission is available quickly before people have problems. Most buyers probably figure they are buying a beta type vehicle anyway. There is already an expectation it won't be as reliable as a regular car, especially with regard to battery life. It is just being bought by rich people that want the novelty of it. This beta launch might not bother them as much as having no car at all. Who knows. __________________ 1996 Buick Roadmaster Wagon 2001 Pontiac Grand Prix

12-22-2007, 12:26 AM	#15 (permalink)
FStephenMasek 6.0 Liter Vortec V8 Join Date: Jul 2005 Location: Southern California Drives: 2006 Ford Explorer EB RWD V8 2002 Mercedes-Benz Posts: 1,999	Re: Tesla Motors raising another $40M to launch Roadster I wonder how many will wreck when the "interim" transmission blows up?

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