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-- Tesla model S has just been named motor trend car of the year the very first time collector car has won the honor.
For the electric carmaker also reported its third quarter loss has widened to a 110 point eight million dollars.
From 65 -- one million a year ago also looming over the company.
Is whether will be able to repay a foreigner in 65 million dollar loan from the Department of Energy.
And with me now is co-founder and CEO of Tesla Motors.
You on muscular and welcome to the show and thank you for coming -- -- legislation's on the award.
So that they -- what do you think it means your bottom line I mean we've laid out your financials right there and in you were nodding you know what do you think it means your bottom line.
Well I think the.
Gonna be really helpful because it it's their choice to consumers -- to the industry that we're really really -- that's not just best electric car but left the best part of any kind.
And I think that that validation from.
From the motor trend which is effectively through the the car of the year award is there's like that -- just fizzle or the -- avert the car industry.
And and minute I think it can only be helpful to -- -- -- expects to improve.
Investors are looking for some significant help -- mean we mention your third quarter loss widen your gross margin has gone down 17% and there are a lot of people out there -- saying that.
You know you have to make good.
On the cash flow down to silence the skeptics.
Not that I think that's absolutely right it's I think that there are some some valid criticisms.
But it in order to book value company useful first book the good product and in good good good products -- -- They deduct the value companies really disproportionate to the value of the of the product itself.
So I think what we've got this really -- product no -- excuse -- to scale up production.
We expect make sure that we're we're looking carefully at our costs.
And -- -- -- breed of political assault company -- I'm very I'm very optimistic about where things are headed.
In -- and it's -- mission that some of the the but you know the financials that that that -- -- quite low and we're we're expected we told people looked at that would happen because it's it's just.
The cost of essentially scaling -- giving up dramatically -- -- going from the roadster which is set about to have.
700 cause -- to the model S at 20000 cause there's so it's.
When -- standing up by a factor of thirty there's necessarily a lot of capital investment that -- -- Europe.
In order -- -- -- do that other would you expect to be a cash flow positive.
Really really an intimate in a matter of weeks.
Fierce opponents say several weeks so -- really quite close this -- but it's far away.
And we expect to profitable next here.
Next year and did you know you became a big part of the political debate.
Of course with the electric car and -- -- you know pay in a lot of ways it boils down to pretty essential question which is that.
You are well known billionaire you know you're selling love whatever -- rich guy what that and you know you're selling cars that are between 249000.
So we mentioned that federal loan that you just refinance 465 million dollars from the government correct.
Why do you need a government loan you have so much money -- cars are so expensive sure why do you need that.
Why do you need taxpayer dies.
And and that that's a good figure question were so they received -- governor -- -- -- -- for that on the face betrays him.
You say what what what's that -- that.
And -- should say the answer is that doesn't doesn't.
Absent or didn't and doesn't absolutely need that the that the federal money within that that.
That that -- program was intended to have a sort of catalytic effects of -- and accelerating effect.
On the -- of of advanced technology.
Vehicles and that's why it was called advanced technology vehicle manufacturing program.
It was completely separate from the bailout -- penalty area things unfortunately -- hundred coincident in time so what you'll confuse it with that.
So could you just pay back tomorrow and get it and then stop the criticism.
Well we who we in fact we've we've been done paying the the loan back in advance so -- there's a business schedule full repayment would have been paying paying interest actually for providing year.
And we've actually been paying that the loan ended at about the principal payments and events -- and and we absolutely committed to prepaying that loan early so we will do that taxpayers.
You thrilled to hear that I'll -- that I've got another sticking point is that.
Buyers get that 7500 dollar credit in my mind it's like.
You know giving somebody food stamps to buy lobster you know why would you write somebody a credit to go out by a 100000 dollar car how do you respond to that.
Well let's hope the marvelous actually thoughts that at around means that the -- -- -- 57000 dollars okay.
I still there -- -- gonna hit yeah maybe its future of course of the kind of but.
If it movement -- the the go to doesn't really is just to get her mass market cars fast as possible so.
It right the beginning of -- -- published this blog.
There which -- tongue in cheek called the the puzzle master plan from and it's really simple it's just.
Who who who -- out with high price low volume they're -- mid priced mid volume and then the third step is low price high volume.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Thank you so much for coming -- and congratulations on the award award -- got a very much 600.
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