Electric-car manufacturer Tesla Motors Inc. stated today that they expect to report a first-quarter profit for its Model S sedan according to Reuters.
The Palo Alto, C.A. company said shares rose as high as 22 percent during the first quarter.
Tesla also announced they would no longer be producing a low-end version of the Model S due to "lack of demand" for the vehicle. Instead the company will focus on higher-margin editions of the vehicle.
Company CEO Elon Musk took to his Twitter account today, Apr. 1, and stated that the company will make an official announcement tomorrow, Apr. 2.
Tesla also said in Jan. that it would be profitable in the first quarter when expenses related to non-cash options and warrants were not included according to Reuters.
The Tesla Model S Performance vehicle costs approximately $96,000 at Tesla dealerships. The company said the base Model S has a starting price of approximately $60,000.
"There have been many car startups over the past several decades, but profitability is what makes a company real," Musk said according to Reuters.. "Tesla is here to stay and keep fighting the electric car revolution."
Only four percent of customer orders were for the base Model S, which was originally going to be equipped with a 40 kWh battery. Instead those customers will receive a 60 kWh battery, with the output and range limited by software to 40 kWh, for no additional cost according to Reuters.
Tesla officially went public in 2010 and orders for their vehicles have increased ever since.
The company made 4,750 vehicles in the first quarter.
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