All-electric carmaker Tesla Motors, headed by Elon Musk, has announced that the 10 year old U.S. company has delivered its first profit on record sales of its Model S. The company has also indicated that it now expects to sell 1,000 more cars annually than previously thought.
During the past quarter Tesla made $11.25 million. On a non-GAAP basis the company said net income was $15.42 million. The company had record revenue of $561.8 million for the quarter, compared to $30.17 million for the same quarter last year.
However, as has been widely reported, Tesla also admitted that $68 million of its revenue for the period came from selling ZEV (Zero Emission Vehicle) credits. It has been reported that Tesla is able to generate as much as $35,000 in ZEV credits per car sold. This would allow the company to make as much as $250 million from the credits this year; quite the money maker. Some other car companies must be wishing they made more well-designed zero emission cars. They have had plenty of opportunity to do so, it has to be said.
Tesla is now expected to make 21,000 Model S cars this year. Unsurprisingly, Tesla’s share price soared to over $62.37 a share for the first time after the announcement.
This is a pretty big milestone for Tesla, and for the electric car industry in general, given all the electric car naysayers around, especially in conservative political ranks. It’s a huge challenge to get any new car company successfully up and running these days, let alone one that makes innovative electric cars. It’s no surprise that it has taken 10 years for the company to get to this point. Do you think the good news for Telsa will keep on coming now that it has turned its first profit and sales of the Model S are strong?