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Tesla Posts First Ever Profit

Tesla Model SConsumer Reports Top Rated Tesla Model S

After nearly a decade in business Tesla published Q1 results for 2013 showing their first profitable quarter ever.  Tesla posted profits of $11.2 million on record sales of $562 million, a whopping 83% increase over the previous quarter.  While most of this gain was the result of increasing vehicle sales Tesla also benefited from the elimination of a DOE “Warrant Liability” resulting in a one-time non-cash gain of $10.7 million and the sale of Zero Emission Vehicle credits to other car manufacturers to the tune of $68 million.  This stems from California Air Resources Board regulations requiring manufacturers to sell a certain percentage of zero emissions vehicles in California, pay a fine, or buy ZEV credits from other manufacturers with a surplus.

Tesla has also managed to reduce vehicle build time by 40 percent and improve inventory and logistics management. In addition they recently entered into agreements to supply both Toyota and Mercedes Benz with powertrains, further establishing the company as industry leaders when it comes to electric-powered vehicles.  

In addition, Consumer Reports just recently posted test results for the Tesla Model S, giving it a top score of 99 out of 100, making it the “best car they’ve ever tested”.  The Model S will go from zero to 60 in just 5.6 seconds and has a 200 mile range. Testers praised the auto’s excellent handling and performance.  With floor mounted batteries the car has a front trunk in addition to a large rear cargo space and will seat up to seven people. The very efficient powertrain uses half of the energy of a Toyota Prius every mile with twice the range, making it more practical for most drivers albeit at a significantly higher price ($89,650 for the fully loaded test vehicle).  Due to the fact that charging stations aren’t widely available and the vehicle takes 5 to 12 hours to fully charge, Consumer Reports stops short of proclaiming the Tesla Model S the best car ever. 

Tesla is definitely miles ahead of other electric vehicle manufacturers and looks to be even more successful in the year ahead. See more of the Consumer Reports test results here and check out the video as the testers see if the Model S can drift.