Tesla reaches profitability for the first time in its 10-year history

By on May 9, 2013, 2:00 PM
tesla, electric car, profit, model s, elon musk

Tesla Motors reported a quarterly profit for the first time in its 10-year history during the first quarter of 2013. This was done by exceeding their own targets for deliveries, expanding gross margin and improving execution throughout the company according to a press release on the matter. Or, in other words, they sold a lot of electric cars.

Total revenues for the quarter were up 83 percent from the previous quarter to $562 million while gross margin doubled from last quarter to 17 percent. The company delivered 4,900 electric vehicles during the first three months of this year. For reference, Tesla was able to constantly produce around 400 or more Model S vehicles per week during the quarter.

Looking forward, Tesla expects US demand to exceed 15,000 vehicles per year while global demand will likely surpass 30,000 units annually. The company is planning to inject another $200 million or so into building up their manufacturing capabilities for the Model S and expanding the service and retail network.

CEO Elon Musk said the company should be able to pull off the planned expansions without having to take out further loans from the government or asking investors for additional funds. At present there are 41 service locations and galleries around the world that showcase Tesla vehicles. Musk would like to add another 15 more galleries before the end of 2013 which would bring the total number of showrooms close to 50.

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