Tesla Posts Surprising Profits
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Tesla reported a surprising second quarter operating profit which caused the electric car maker’s shares to rise more than 15 percent after the closing bell.
The company credits the success of its Model S and the improved model gross margin, indicated that its rate of production is picking up the pace.
Earnings excluding some items rose 20 cents per share, versus a loss of 89 cents a share for the same time period in 2012. Revenue gains were astonishing, rising from $27 million just one year ago to a staggering $405 million this year.
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Analysts expected a loss for the car maker, according to a consensus from Thomson Reuters.
"While profits were still modest in absolute terms and not our primary mission, net income increased by 70 percent from last quarter, driven by record Model S deliveries and a significant improvement in automotive gross margin," the company said in a statement.
European deliveries began this week to Norway, Switzerland and the Netherlands. "In Norway alone, we expect to deliver almost 800 vehicles this year based on current orders," it said.
"If demonstrated demand in North America and Europe is matched by similar demand in Asia, annualized sales for Model S could exceed 40,000 units per year by late 2014," the statement said. Tesla also says that it plans to open its first store in China this year.
