Tesla Posts First-Ever Quarterly Profit, Raises Global Sales Target
Tesla CEO Elon Musk must be smiling, because the startup company has made a profit for the first time in its 10-year history. Tesla reported revenue of $562 million, resulting in an $11.2-million net income.
The Model S, which we named the 2013 Motor Trend Car of the Year, plays a huge part in this, as the company sold 4900 vehicles in the first quarter, exceeding the original 4500-unit goal. Tesla said it produced 400 or more cars a week, totaling 5000 for the first quarter. The company also raised its full-year forecast to about 21,000 worldwide deliveries (from 20,000), which seems like a realistic goal since the company has reduced the number of hours it takes to build a Model S. The automaker estimates U.S. demand this year for the Model S at 15,000 units.
Tesla now offers an improved finance plan and longer-term loans, which should make it easier for more people to consider a Model S. The automaker also improved its service experience, though the dealer network continues to expand. Over the last 30 days, Tesla’s stock has jumped from around $42 to about $55 a share. Whether the Model X can repeat the Model S’ success remains to be seen.
In other Tesla news, the Model S has also earned Consumer Reports‘ highest rating of 99 out of 100, performing better than any other vehicle except the Lexus LS 460L, which earned the almost-perfect score in 2007. The electric sedan was lauded for its quick acceleration, precise handling, and quiet interior. The publication didn’t like the limited range and long charging times.
Source: Tesla, Consumer Reports