Tuesday, April 2, 2013

The World's First Profitable Electric Vehicle: Tesla Reports Profit & Share Price Jumps 19%

For decades, either starting a new car company or making electric vehicles has been an almost sure way to lose lots of money.  

And so the news that Tesla is the world's first profitable electric vehicle company is a true milestone.
http://www.reuters.com/article/2013/04/01/us-teslamotors-outlook-idUSBRE93008D20130401. Investors certainly took note of Tesla's first quarter profit, as Tesla's stock price jumped 19%.  Tesla's profitable quarter was the result of sales exceeding 4,750 vehicles and is encouraging, though obviously no guarantee of future success. 

The Tesla Model S has been receiving rave reviews, winning many automotive awards from all corners.
http://www.teslamotors.com/models. A fully electric car, the Model S can go a remarkable 301 miles on a charge with the biggest battery--an 85 kWh option.  The price for that revolutionary vehicle is an enormous $96,000.  Tesla also has an 60 kWh option that reduces range to a still big 232 miles and the price to a still high plus $70,000.

Unlike Fisker that appears to be heading to bankruptcy court, Tesla may have found a small but profitable niche for electric vehicles.  If so, that's a remarkable feat at this stage of battery technology and speaks volumes about Elon Musk's vision and ability to execute.

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