Tesla Motors announced earlier this week that the sales of the Model S has exceeded expectations compared to the target that was provided in the mid-February shareholder letter. The sales of the Model S exceeded 4,750 units versus the 4,500 unit outlook from earlier. Tesla is now going to amend their Q1 guidance to full profitability, both GAAP and non-GAAP.
“I am incredibly proud of the Tesla team for their outstanding work. There have been many car startups over the past several decades, but profitability is what makes a company real. Tesla is here to stay and keep fighting for the electric car revolution,” stated Tesla Motors co-founder and CEO Elon Musk. “I would also like to thank our customers for their passionate support of the company and the car. Without them, we would not be here.”
Tesla Motors also said in a statement that the Model S will not have a small battery option (40 kWh battery pack) due to lack of demand. Only 4% of the Model S customers chose the 40 kWh battery pack. Customers prefer to travel long distances instead. Customers that ordered that option will receive a 60 kWh pack instead, but range will be software limited to 40 kWh. It will have the improved acceleration and top speed of the bigger pack so it will be a better product than what was originally ordered. It can also be upgraded to the range of the 60 kWh upon request by the original or future owner.
All of the 60 kWh Tesla Model S cars have been and will be built with Supercharger hardware included for people that may want to buy the upgrade. The company will see a slight cost risk as a result.
First profitable Q for Tesla thanks to awesome customers & hard work by a super dedicated team teslamotors.com/about/press/re?
— Elon Musk (@elonmusk) April 1, 2013