Tesla Turns Profit; Looks to Future

Tesla Motors has finally reported a quarterly profit, and its stock is up 40% this week. Despite the electric carmaker having sold just fewer than 5000 vehicles this quarter, following the archetype of Porsche, it turned a profit by selling low-volume, high-margin luxury EVs. What’s more, Consumer Reports boldly stated that the Model S “performed better, or just as well overall, as any other vehicle of any kind.”

But the company does not plan to limit itself to the market for high-ticket vehicles, with CEO Elon Musk’s next goal to bring high performance EVs to the mass market through a third model in the range of $30000-35000 (the Model S starts at $69900). Moreover, Tesla is now in talks with Google to bring the company’s unmanned driving systems to its next line of cars. According to Musk, “autopilot is a good thing to have in planes, and we should have it in cars.”

source: http://www.autonews.com/article/20130510/BLOG06/130519994/next-hurdle-for-hot-tesla-is-pushing-evs-mainstream

2 comments to Tesla Turns Profit; Looks to Future

  • Being first to market helps; Fisker’s launched was marred by delays. It also followed the strategy of most new entrants in the early years of the 20th centuray: start small and at the luxury end, then try to work downmarket.

  • tommd13

    Tesla’s CEO seems to be the right man for the job, Fisker had a poor run and some poor luck, though I thought their cars were unique and beautiful. I believe Tesla’s idea to make a car for 30-35 k is a great idea and will help make people aware of other alternatives besides gas guzzlers. Not to mention their cars look pretty flashy. The only problem is do they have the resources to develop an electric vehicle that maintains the Tesla appeal for under 40 k?

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