The Tesla Roadster: Running on Empty?

Valuing Distant Cash Flows and Real Options


Technology-intensive product development involves huge up-front investments into research design and development, prototype testing, standardization, and eventual commercialization. Often, such start-up ventures spend several years before they manage to achieve critical mass in sales volumes and to break even on their initial investments. Yet, such ventures are of great interest to equity investors owing to the potential upside that a breakthrough could generate, forcing well-established technology and mature industry players to play catch-up. The Roadster was the first of several electric vehicles (EVs) proposed to be commercially launched by California/Palo Alto-based Tesla Motors. The company had made substantial investments into the design and development of the product and a further few years making losses from the sale of the Roadster.


Cash Flow Electric Vehicle Initial Public Offering Cash Flow Forecast Lease Data 
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Copyright information

© Springer India 2015

Authors and Affiliations

  1. 1.Verdurous Solutions Private LimitedMysoreIndia

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