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“Ere many generations pass, our machinery will be driven by a power obtainable at any point of the universe.” ~ Nikola Tesla
This morning the electric car manufacturer that bears Tesla’s name (NASDAQ:TSLA) announced that its sales of its Model S have exceed the goal of 4,500 production units announced earlier this year in February. The company rolled 4,750 units and has amended its first quarter guidance from a projected loss to a profit. It’s share price on the NASDAQ was up 13.35% in early morning trading to $42.95, although the company has warned investors in its annual report that its stock would most likely remain volatile in the foreseeable future.
Tesla designs and manufactures its own fully electric vehicles as well as electrical systems for other manufacturers’ hybrid cars. The Tesla Model S, which can reach driving distances of 250 miles, is currently being manufactured to fill their current order book, so don’t look for many of them at a dealership. The Model S is currently being sold in 31 countries. Although Tesla is moving rapidly to place service centers and “Super Charge” centers at strategic locations just outside major metropolitan areas, the autos are rechargeable at any location that has 220 volt service.
Note: Super Charge centers can fully recharge the Model S in about an hour or, as Tesla advertises, about the time it takes for you to have lunch. Charging at home or a hotel may take up to seven hours.
The beginning price point for the Model S is close to $59,000, but U.S. taxpayers get a hefty tax credit for purchasing an eco-friendly vehicle.
Tesla CEO and co-founder Elon Musk noted this morning that “There have been many car startups over the past several decades, but profitability is what makes a company real. Tesla is here to stay.”
Although 2012 was disappointing with a $75 million loss on sales of $306 million, it appears that the first quarter of 2013 may be the beginning of long term success for the company as public acceptance of an electronic vehicle with robust performance is beginning to accelerate. Indeed, the difference in the Tesla product is in the distance available on a full charge that is about two-and-a-half times that of competitor models – not to mention that those who have test driven the Model S seem to agree that its performance in terms of acceleration and drive-ability are unparalleled.
Tesla understands that the more that their footprint increases and the more that they impact the automotive industry, the more likely there will be more national and international regulations designed to control the electric motor car industry, which could make the cars more costly to produce and deliver. Still, the company expects that as production increases, their cars will become more available and affordable.
