In a much-anticipated quarterly report, Tesla Motors reported that in the fourth quarter the electric automaker saw revenue of more than $600 million. Not only that, but Tesla is making more money than expected per car, with a gross profit margin of more than 25% for each Tesla Model S sold. Very wow.
By the end of the fourth-quarter of 2013, which ended on December 31st, 2013, Tesla sold 6,892 Model S sedans, beating even its own internal estimates. Furthermore, the gross profit margin on each Model S sold rose to 25.8% for per vehicle. This means buyers are still opting for profit-padding options like the rear jump seats and higher-performance models.
Using Generally Accepted Accounting Practices, or GAAP, Tesla posted a loss of $16 million on revenue of $615 million, though all that money didn’t come from Model S sales. Tesla has lucrative powertrain deals with both Daimler and Toyota, as well as clean credit sales that helped their total revenues rise to more than $2 billion in 2013, though going forward Tesla has even greater ambitions.
Elon Musk says that in 2014, production of the Model S should rise some 55%, with the goal of building and selling more than 35,000 vehicles in the next year, including the Tesla Model X SUV slated to begin production this year. Elon says that the Tesla store in Beijing has quickly become the busiest Tesla store, even though deliveries don’t begin until spring. Maybe Elon was right to believe the Chinese market could be Tesla’s golden goose. Speaking of, Tesla’s already-surging stock shot up to new highs on the news before settling back down.
Tesla Model S production could use to as high as 1,000 units per week by year’s end as additional staff and production facilities come online. The trajectory for Tesla seems unstoppable going into the new year.
Source: Tesla Motors