You may have noticed many automotive and Wall Street websites predicting that the darling of the stock market, Tesla Motors, would almost definitely post a loss at its quarterly report. But not us, and for good reason. Once again Elon Musk beat expectations, delivering a surprise profit to shareholders, as well as sharing a few more details on the upcoming affordable Tesla BMW 3-series fighter.
Net income for Tesla grew 70% in the second quarter to $26 million, or about 20-cents per share, beating expectations of a loss of 17-cents per share. Production of the Tesla Model S is also exceeding expectations, with 5,150 cars delivered in the 2nd quarter, beating Tesla’s own predictions of about 400 cars a week. Elon Musk said production is actually closer to 500 vehicles per week now.
These strong sales have helped Tesla nab over 8% of the luxury car market, and sent stock prices surging last night after the news. More stock market pros expected Tesla to post a loss due to changes affecting its sale of Zero-Emissions Vehicle credits to other automakers. Interestingly enough, if you include the financials of Tesla’s leasing operation, profits drop to just 5-cents per share, which is still better than a loss. Even though Musk says profit isn’t important right now, it certainly isn’t hurting Tesla’s valuation to make some money.
Musk also tossed another tidbit of information for the upcoming Tesla BMW 3-series fighter, the car that will bring Tesla to the masses. According to Musk, the unnamed electric sedan will have a price of about $35,000, with a range of at least 200 miles. That $35,000 price point is without tax subsidies, by the way, though 2017 is still a long ways out, and Tesla will need to turn many more profitable quarters before such a car hits the road.
200 miles is more than double the range of any EV currently on sale in the U.S. that isn’t the Tesla Model S, and EV prices are only just starting to align with what people will actually pay for them. It could also be the magic number that convinces people EVs are no longer just some toy, wannabe car. So 200 miles of all-electric driving for just $35,000 sounds awfully ambitious, even with a 2017 deadline.
But at this point, anyone who doubts Elon Musk can do what he says he wants to do just hasn’t been paying attention. If you want to read the whole quarterly report for yourself, check it out here.