Tesla Reports First Quarterly Profit in Company’s History image

The exciting news Tesla CEO Elon Musk promised on Twitter is that the automaker managed to reach its first quarterly profit in the automaker’s history.

During the first quarter Tesla sold more than 4, 750 vehicles, surpassing its forecast of 4, 500 units. the company hasn’t announced yet its full first-quarter earnings.

“There have been many car startups over the past several decades, but profitability is what makes a company real,” Tesla CEO Elon Musk said Sunday in a prepared release. “Tesla is here to stay and keep fighting for the electric car revolution.”

Elon Musk has forecast in February that the company will reach profitability during the first quarter, after it lost $396.2 million last year. Tesla’s stock reached an all-time high on Monday, April 1st, to $46.68 Monday, after Musk made this announcement.

Tesla also announced it will stop producing the kWh Model S sedan, due to lack of demand. This means that the cheapest model offered by Tesla, for which it received a $465 million U.S. Department of Energy loan, will cost over $60,000, after a $7,500 federal tax credit.

“While a blow to mass-market EV enthusiasts and somewhat validating a smaller addressable market, we think consolidating the battery configurations that reflect true demand is the right thing to do,” said Adam Jonas, an analyst at Morgan Stanley Research, in a Monday report.