After years of operating in the red, Tesla Motors is finally expecting to turn a quarterly profit. This is the first time it has happened since its initial public offering in 2010. As a result, the company's stock was up nearly 20 percent which in part lead to it's profit and increased guidance for 2013 Q1. In the fourth-quarter of 2012 Tesla lost $75 million on $306 million in sales.
The stock price boost was due to sales which exceeded projections by 250 units. The company told investors that it sold 4,750 units of the Model S in the quarter when it had forecasted 4,500. The company didn't disclose how much it made but it is expected to announce its first-quarter 2013 earnings next month.
Tesla also mentioned that it will be discontinuing the "small battery option" as a result of minimal customer interest. Only 4 percent of buyers chose this option which was insufficient demand to justify producing the battery. Instead, all customers will receive the 60 kilowatt hour battery pack option but it will be software limited to 40 kWh.
Tesla wrote in its 8-K filing that, "It will still have the improved acceleration and top speed of the bigger pack, so will be a better product than originally ordered, and can be upgraded to the range of the 60 kWh upon request by the original or a future owner."
"Tesla is also revealing a small Easter egg today: all 60 kWh cars have been and will be built with Supercharger hardware included," the company wrote. "Tesla is taking a slight cost risk that ultimately all customers will want to buy the Supercharger upgrade and receive unlimited, free long distance travel for life. Even for those that never drive long distances, this will improve the resale value of their car to people that do."
Customers continued to purchase the vehicle even after a recent poor review by the New York Times. The Model S has been recognized by winning "Car of the Year" honors from both Automobile Magazine and Motor Trend.
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