Tesla turns a profit for the first time in its history, hopes to deliver in Europe by Q3
Budding electric car company Tesla has reported its Q1 2013 financial earnings, telling investors it has turned a profit for the first time in its ten-year history, an impressive feat for the relatively new company.
Tesla generated profit of $15 million for the quarter, on record sales of $562 million, up 83 per cent year on year. During the quarter, Tesla found itself cranking out 400 or more Model S vehicles a week, to a total of 5,000 during the quarter. It further reduced the time it took to build a car by almost 40 per cent between December and March, something buyers have struggled with waiting for their new vehicle. Tesla believes it will build another 5,000 vehicles during Q2.
Tesla has already begun taking orders for vehicles outside of North America, seeing Model S pre-orders of up to 20,000 a year worldwide. The company has not begun delivering vehicles outside of North America but that will soon change.
Speaking on the company's financial conference call, Tesla CEO Elon Musk told investors that buyers in Europe and Asia might see vehicles starting to be delivered by Q3 of 2013. The free-speaking Musk said: “Do not take these numbers as final in any way, but if I’m asked to speculate I could say 15,000 units for North America, 5,000 for Europe and 1,000 for Asia [by the end of the year].”
Deepak Ahuja, CFO of Tesla, added that he believed "we’ll see at least 10,000 units of demand per year in Europe, and at least 5,000 in Asia”.
For customers in North America who have received their Tesla vehicle, the company added 12 new service locations, bringing the total network to 41 locations. Tesla is planning 30 more by the end of 2013.
The news that Tesla turned a profit had the company's stock pricing going on the up-and-up during after-hours trading. At the time of publishing, Tesla is up 23 per cent at $69 (£30) per share.