Tesla announced a profitable first quarter, due to higher-than-expected sales for its new Model S sedan.
In February the automaker, headed by billionaire Elon Musk, estimated that sales will reach 4,500 units, but Tesla hit ‘full profitability’ as the Model S surpassed this target by 250 units. Tesla did not give a specific profit figure. The company expects the Model S to sell a record 20,000 units this year. On March 28th, Tesla dropped 27 cents (0.7%) to $37.89 at the close in New York trading.
In January, Tesla announced its Fremont plant in California was running at full capacity, producing 20,000 Model S units annually. Although it took some time until Tesla began production of its Model S, now the plant were the model is produced runs at full capacity, extending the waiting time for the car to four or even six months, depending on the content, according to Jerome Guillen, the company’s director of Model S programs.
Last week, Tesla CEO Elon Musk said that on April 2nd, the company will make a ‘really exciting’ announcement. Tesla’s shares climbed the most in almost five weeks after Musk posted on Twitter this news. A similar announcement from Musk was posted on Twitter in December, when he said that the automaker was cash flow positive in the last week of November.