Tesla Expects First-Ever Profit
Despite today's news of the U.S. manufacturing sector's slowing growth, electric car pioneer Tesla Motors is expecting to post its first-ever quarterly profit after sales of its Model S exceeded expectations.
While the Model S had its naysayers since its release last year, the doubt seems to have evaporated in the wake of this morning's announcement. By mid-morning today, the company's shares were up 20 percent.
The company anticipated selling 4,500 units of the four-door luxury sports sedan this quarter, but sales over this past weekend have pushed that figure beyond the 4,750-unit mark. So far, Tesla has sold about 10,000 units to customers worldwide.
This led the company to amend its first-quarter guidance, but Tesla co-founder and CEO Elon Musk suggested in a tweet that the even bigger news will come on Tuesday.
Still, it's hard to cast a shadow on news like this. This quarter marks not only the first ever of its kind at Tesla, but also follows a $75 million loss from the last three months of 2012. The company reported $306 million in sales.
This weekend's news came alongside the announcement that Tesla plans to halt production on its entry-level version of the Model S, scrapping its 40-kilowatt hour battery for a larger 60-kilowatt option that will boost the vehicle's range from 160 to 230 miles. The units are turned out in the former New United Motor Manufacturing facility in Fremont, Calif., that Tesla bought and reopened in 2010.
In light of the sales boost, Musk thanked customers for their “passionate support.” Consumers who recently bought a Model S did so following a controversial review from the New York Times that Tesla would later accuse of being falsified.
Tesla may be known for its cutting-edge design and engineering, but underneath of those ideals, Musk is still holding to pragmatism: “There have been many car startups over the past several decades, but profitability is what makes a company real.”
But in light of scathing reviews and disappointing news for the manufacturing sector, Musk has not lost sight of his lofty goals, proclaiming, “Tesla is here to stay and keep fighting for the electric car revolution.”
Full story at CNN
