23 Jun 09 13:15
Tesla's boss Elon Musk has revealed that the car company has dramatically cut production costs on its Roadster model but there's no word on whether that will translate to a reduction on the asking price.
In 2007 the electrically powered two-seat Roadster cost $140,000 (£85,000) to build but Musk says economies of scale, automation of the build process and a decision to move production of the battery packs from Asia to California has reduced the cost to $80,000 (£48,000).
Tesla has been losing money on its Roaster which has a sticker price of $109,000 on the American market. With the new cost cuts Tesla reckons it could make its car profitable as early as July.
If Tesla can make money on the Roadster, it gives it a much better chance of mass producing its recently-unveiled Model S Sedan. The American car company also has plans to build a new factory but is relying on a $350 million loan to fund construction and start-up.
