Major Automakers Still Trust in Tesla, Even as Net Losses Increas

Just days after Tesla CEO Elon Musk declared the electric-vehicle manufacturer could reach profitability as soon as 2013, the company reported a third-quarter loss nearly double that of a year ago.

Tesla reported a net loss of $65.1 million for the period from July to September; for the same period in 2010, the net loss was $34.9 million.

Demonstrating the paradox that is Tesla -- a company that produces undeniably compelling vehicles and generates high levels of industry and media attention yet has never turned a profit -- the Palo Alto, Calif.-based company also announced a tentative agreement to supply an electric powertrain to Mercedes-Benz for use in an upcoming EV from the German manufacturer. In a letter to shareholders, Tesla acknowledged "the receipt of a letter of intent from Daimler for a full powertrain program for a vehicle in the Mercedes line," and said that details of the deal "remain confidential, but will be announced in the coming months."

[Source: Automotive News.]

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