Tesla Selling More Cars Than Expected, And Now Profitable

http://www.slashgear.com/tesla-cuts-cheapest-model-s-as-buyers-opt-for-range-instead-01275925/
[image] Tesla cuts cheapest Model S as buyers opt for range instead
by Chris Davies  Apr 1 2013

[image  
http://cdn.slashgear.com/wp-content/uploads/2013/04/tesla_model_s-580x386.jpg
tesla_model_s
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Tesla has scrapped plans for a small battery version of its Model S
all-electric car, claiming tiny driver interest makes the 40 kWh variant
uneconomical for production. Only 4-percent of Model S buyers opted for the
cheaper Model S, which started at $52,400, Tesla said in a statement today,
along with the revelation that stronger than expected deliveries means the
firm will make a full profit in Q1 2013. Those who went for the cheapest
Model S rung will still get a car, though, borrowing the 60 kWh power pack
from the $62,400 version, albeit with a software cap on range.

Even though the car will have a bigger battery than expected – good for 230
miles at 55mph, rather than the 160 miles of the smaller version – it won’t
deliver that full range. Instead, Tesla will artificially cap the cheaper
Model S using software.

Despite that, there are still some advantages to the strategy, including the
ability to “upgrade” the car at some point in the future. Tesla will allow
range-loving owners to pay to unlock the extra 20 kWh of potential in the
power pack, at any point in the car’s lifetime. Meanwhile, acceleration will
also improve, with the software-limited variant matching the 5.9s 0-60mph
time of the 60 kWh car, a 0.6s improvement on what customers had been
expecting.

It’s not the only bonus Tesla has announced today. The company has also been
quietly baking its Supercharger hardware into the 60 kWh Model S, which
means that those who later decide to pay to use Tesla’s growing network of
cross-US high speed charging points won’t have to have equipment
retro-fitted to their car. Previously, the Supercharger tech was only
installed by default on the 85 kWh model; it’s a $2,000 option on the 60 kWh
Model S.

For investors, though, it’s the big picture around Model S sales that will
put the most smiles on faces today. Tesla has confirmed that deliveries of
cars this quarter will exceed 4,750, up 250 on the estimates the company
previously announced. The result is full-profitability in Q1, both GAAP and
non-GAAP, Tesla says, having previously confirmed that it would repay its
Department of Energy loans five years early.
[© 2013 SlashGear  All Rights Reserved]



http://gas2.org/2013/04/01/no-joke-tesla-motors-makes-profit-but-kills-40-kwh-model-s/
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http://www.usatoday.com/story/money/cars/2013/04/01/tesla-motors-model-s-profitable/2041457/
Electric car maker Tesla says it's profitable
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