Tesla Motors said that they have earned profit last month. This is the first time the company has made a profit since 2002. The company made $1 million on $20 million revenue in July after shipping 109 Roadsters. The company said that the profit was due to improved margins on the two-seater car and a “surge” in orders. The starter price of the automobile is $109,000.
“We achieved 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,” stated Tesla Motors CEO Elon Musk. “This also shows there is a strong demand for the car… Moreover, customers know that in buying the Roadster they are helping fund development of our mass-market electric cars.”
Although there has been a surge in orders, Tesla said that rolling cars out of production won’t be as fast. Tesla has produced about 609 Roadsters since production has been rolled out in March 2008. Tesla is on pace to meet the goal of rolling out 1,000-1,200 cars per year.
Tesla plans to spend an additional amount of money to expand retail operations and a new car model. Tesla has showrooms in LA, NYC, Seattle, London, and Menlo Park. Tesla plans to open showrooms in Chicago, Miami, Munich, and Monaco. Tesla also plans on investing in the Model S sedan mobile which they plan to start selling around 2011.
In late June, Tesla announced that they are raising $465 million from The Department of Energy. Tesla will be using the money to develop the powertrain for the Model S and prepare a factory to build the car.
The revenue and net income is based on the GAAP and was audited by a Big Three accounting firm. The $20 million revenue does not include deposits made on Tesla automobiles that over 1,500 customers have put down. The revenue and net income also does not include the $50 million investment that Daimler has made in Tesla.