Hey Mac What's Up? - Tesla Skips Chicago Show Amid $$ Crunch
By Mac Gordon
Editor at Large
The Auto Channel
Production of the Model S at Tesla's Fremont, CA plant has reached a 400-a-week pace, according to the charismatic Musk, who skipped a Chicago display but added Motor Trend magazine's “Car Of The Year” award giving the Tesla S a “big lift.” Echoing this newsletter's reports on such sorry start-up failures as John DeLorean, Preston Tucker and Ford Motor Company's Edsel sedan, Musk reportedly conceded that publicly-owned Tesla has lost money in every quarter since an initial public stock offering in 2010.
“I'm happy,” Musk told Reuters, “we should have a profitable quarter this year. Shame on us if we can't achieve that.”
Musk has ducked interviews with the New York Times and Wall Street Journal , prompting the Journal to include in its piece on the status of Tesla Motors this sentence: “Not since the 1920s has a startup car company managed to survive in the U.S. market.” Besides DeLorean, Tucker, Edsel, Saturn and a host of other brands, all-electric cars which tanked, included the battery-operated Detroit Electric in the 1910s and GM's EV1 and Honda's EV Plus in the 1990s.
Most state auto franchise laws have added a clause forbidding or limiting automaker ownership roles in franchised dealerships. Major auto shows do permit displays produced by dealers and automakers.
The Chicago Auto Trade Association, the dealer association has sponsored the Windy City shows since 1901. It draws the largest attendance of any show at over one million Chicagoans.