Tesla Motors has announced that the electric car maker has exceeded its sales target in February, and in Q1 will be profitable for the first time. A total of 4,750 Tesla Model S cars were sold in the first quarter, 250 more than predicted. The strong sales news gave Tesla stock a bump in anticipation of growing sales and continued profitability.
The company will also be cutting out the 40kWh Model S, the least expensive and least powerful version of the vehicle. There has been a lack of demand for this version of the Model S. The low-end vehicle to be taken out of production has only accounted for about 4% of Model S sales, so Tesla will be discontinuing it in exchange for working on more 60 and 85 kWh models.
Customers who put down a deposit on the 40 kWh model will instead get a model with a 60 kWh battery that is limited to using 40 kWh of juice. There will be an option to unlock the other 20 kWh for an additional $10,000, putting the price of the vehicle at $60,000.
$60,000+ might be a little steep for some people interested in electric vehicles, but the report does seem to demonstrate that there is growing interest in the industry, which we all know is good news for future pricing and improved technology. Would you pay $60,000+ for a Tesla Model S?
Image CC licensed by Al Abut: New all-electric Tesla Model S