Tesla Turned Profitable by Asking Customers to Make Payments Ahead of Schedule image

Tesla managed to reach profitability for the first quarter, but only thanks to CEO Elon Musk’s unusual strategy.

According to Bllomberg, Tesla made this huge step for the startup by urging customers who have reserved vehicles to make the payments as soon as possible. Cory Johnson, editor-at-large for Bloomberg Television, got his hands on an e-mail sent by the automaker to a customer, to help the company reach a milestone that would help not only the car maker but also its customers.

“Tesla is right on the cusp of profitability this quarter for the first time in 10 years since the company started. This is a huge company milestone that will not only be great for the company, but also for our customers. In order for Tesla to be able to count your Model S for the quarter, we simply need to receive payment,” said the e-mail.

Although asking for the payment in advance may have helped Tesla turn profitable during the first quarter, the company might struggle in the next quarter, as payments which were due in the following months have already been made ahead of schedule.

  • Mike

    From reading other articles this email wasn't approved by Musk. In addition they only counted the final sales which were 4750 instead of the planned 4500. These were total sales and not reservations counting to get profitability.