By Polya Lesova, MarketWatch FRANKFURT (MarketWatch) -- Auto manufacturers at this year's international motor show here competed Tuesday to unveil the "greenest" car technology possible.
For Elon Musk, the chief executive and chairman of electric-vehicle producer Tesla Motors, it was a moment to savor, as he announced that his company has just delivered its 700th car -- an electric-blue Roadster Sport -- to a 24-year-old German law student.
"If you go back a few years, there were a lot of skeptics about Tesla," Musk said. "In July this year, Tesla hit profitability. We continue to expand as fast as we can find good people."
Tesla Chief Designer Franz von Holzhausen added: "If you walk around the [Frankfurt] show, you'll see the spirit of electric vehicles coming alive."
San Carlos, Calif.-based Tesla achieved overall corporate profitability in July with approximately $1 million of earnings on revenue of $20 million.
The company finalized an $82.5 million, "Series F" funding round late last week, with Fjord Capital Partners joining as a new investor, a Tesla spokeswoman told MarketWatch on Tuesday. Fjord is a Cyprus-based private equity manager focusing exclusively on clean energy investments.
Tesla plans to use the funding to accelerate its retail expansion in advance of the Model S car, an all-electric, seven-passenger sedan, whose production is set to begin in late 2011.
Recent investors participated jointly in the "Series F" round to maintain their equity ownership from their initial investment. In May, German carmaker Daimler /quotes/comstock/13*!dai/quotes/nls/dai (DAI 48.15, -0.86, -1.76%) /quotes/comstock/11e!fdai (DE:DAI 33.13, -0.29, -0.85%) said it was investing $50 million for a nearly 10% equity stake in Tesla.
At the auto show, Tesla unveiled Tuesday the production version of the second-generation Roadster and the Roadster Sport. The company also presented for the first time to a European audience the Model S.
The Roadster, Tesla's flagship car, has an estimated average range of about 400 kilometers per charge and produces zero tailpipe emissions, according to the company.
In an interview with MarketWatch on the sidelines of the auto show, Tesla's chief executive said he wants to boost sales in Europe and Asia.
"For a lot of people, until they see a store, they are not comfortable buying," Musk said. "Market penetration of southern Europe is not that strong."
Musk, who previously founded Zip2 and PayPal, hopes to change that by opening a store in Monaco later this year, he said. Only a few days ago, Tesla opened a store in Munich, its first regional sales and service center in continental Europe. A righthand drive will be coming out soon for Britain, Musk said.
In Asia, "China and Hong Kong are probably the biggest market," Musk said, adding that he sees a lot of potential opportunities in Japan, Singapore and Australia as well.
The U.S. currently accounts for two-thirds of Tesla's order book, while Europe makes up one-third.
Tesla can make its cars more affordable by optimizing technology and scaling up production, Musk said: "Model S is [going to be] half the price of the Roadster."
Tesla will also grow, Musk said, through its recent partnership with Daimler AG.
Also Tuesday at the Frankfurt auto show, France's Renault /quotes/comstock/23r!prno (FR:RNO 32.67, +0.27, +0.82%) unveiled four electric concept cars, providing a preview of the manufacturer's range of electric vehicles to released beginning in 2011.
"The time is right for zero emissions. The world is facing an environmental challenge," said Renault Chief Executive Carlos Ghosn at a press conference. "We need to start taking action now to reduce [carbon emissions]."
"Our electric vehicles are a breakthrough because they are designed to be mass marketed," Ghosn said. "Environmental soundness at a price everyone can afford."
Polya Lesova is a New York-based reporter for MarketWatch.
source : www.marketwatch.com
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