Tesla's Model S Beats Sales Goals, Makes Profitability Likely

Tesla cuts budget Model S, but looks on course to make money.

Tesla has said it has beaten its sales goal for the first quarter, selling 4,750 Model S electric cars--that's 250 above its predicted quota. If sales keep up, the company looks like it will safely reach its plan to sell 20,000 vehicles this year.

The company has also said it won't be selling the 40 kWh version of the car because it wasn't seeing enough demand for the entry-level option.

Tesla's press release notes, "Customers are voting with their wallet that they want a car that gives them the freedom to travel long distances when needed."

Instead, customers who ordered a 40 kWh battery will get the standard 60 kWh option--but with the range limited by software in order to push out better top speed. Full storage space can be accessed later on request (presumably for a fee).

Tesla's CEO Elon Musk recently got into a dustup with the New York Times over the Model S, when a New York Times reviewer said the car didn't deliver on its promised range.

The company recently gained much positive press for its Model X car, but questions remain over Tesla's future and its impact on the fledgling electric car industry.

Does Tesla herald a sea change in electric cars? Or is the brand too luxurious to really matter?

[Image: Flickr user Al Abut]

Add New Comment

3 Comments