Tesla Motors reaches profitability
Tesla achieved profitability in the month of July with $1 million in earnings on revenue of $20 million, the company announced on Friday. Tesla says it shipped 109 Roadsters in July, while also reporting a surge in new orders for the electric sports car.
"We achieved a bottom-line profitability thanks to a tremendous amount of hard work by the Tesla team to improve quality, while simultaneously reducing costs on the Roadster," said Tesla CEO Elon Musk. "This also shows that there is strong demand for a car that is unique in offering high performance with a clean conscience.Ã'Â Moreover, customers know that in buying the Roadster they are helping fund development of our mass market electric cars."
The company says it is "deep into the development" of the production Model S, which is expected to arrive at dealerships in late 2011 or early 2012. Speaking of stores, the company is expected to open retail locations in Chicago, West Palm Beach, Washington DC, Toronto, Munich and Monaco this summer.
The profitability announcement marks the latest milestone in a chain of positive news out of Tesla over the past few months. In May, the company took a $50 million investment from Mercedes parent Daimler. In June, Tesla received approval for $465 million in loans from the U.S. Department of Energy to fund construction of its Model S production facility.