Tesla Motors To Stop Production of Tesla Roadster in 2011

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In papers filed to the Securities and Exchange Commission, Tesla Motors has quietly mentioned that they do not plan on producing the current Tesla Roadster model after 2011.  Tesla hopes to produce a new Tesla Roadster by 2013, but supply issues will cause the end of the current model next year.

The Tesla Roadster is not only based on the design of the Lotus Elise/Exige, but it is produced by Lotus in Hethel, England.  Reports suggest that Lotus will be updating its production systems and may discontinue its current Elise/Exige models, which would in turn end production of the current Tesla Roadster.

Ending production of the current Tesla Roadster in 2011 could prove dangerous for Tesla Motors’ upcoming IPO.  This would leave Tesla without a product until its first Tesla Model S rolls out of the factory in 2012.  Beyond the financial constraints this will put on Tesla Motors, this could also lead to part supply chain issues for service of Tesla’s existing fleet.

The announcement that Telsa Motors will discontinue its Tesla Roadster in 2011 could be financially damning to the company.  However, the $465 million federal loan Tesla received last week should help insulate the company from cash flow problems until the first Tesla Model S hits the market.