Tesla’s profit during the first quarter led by an increase in demand for the Model S, was also helped by the surge in sales of the US and California environmental credits.
Sales of environmental credits reached $85 million, including zero-emission vehicle credits of $67.9 million in California, plus other ‘regulatory credits’ worth $17.1 million. Tesla’s surplus credits are due to the fact that the automaker sells only EVs, which do not produce tailpipe emissions. For the first quarter Tesla reported a net income of $11.2 million, more than the analysts’ estimates.
In order to curb the tailpipe exhaust, California has set various zero-emission vehicle credits from electric auto sales. Tesla CEO Elon Musk said that the revenue from the zero-emission credits during Q1 was probably a peak for 2013.
“We’re expecting a decline in ZEV credit revenue for Q2, and then, probably a fairly significant decline in Q3,” he said. “We are not expecting anything in Q4.”
Tesla’s net income during the first quarter totaled $11.2 million, from the 2012 loss of $89.9 million and the profit was 12 cents a share, compared with a loss of 76 cents last year and with the analysts’ estimates of 4 cents. Tesla’s Model S also recently received a near-perfect score from Consumer Reports, 99 out of 100 points. During the first quarter Tesla sold 4,900 Model S vehicles, compared with the previous forecast of 4,500 units.