“Promises were made to be broken,” but not by Tesla Motors, which is good news for everyone, including investors and prospective clients.
The driving force behind Tesla Motors, Elon Musk, has almost everything to do with how this high-tech electric vehicle has developed from idea to success. So many things can destroy a new company, but Tesla Motors has managed to remain on top, manufacturing a truly remarkable electric vehicle that people actually want to drive.
As a matter of fact, better than 20,000 prospective clients sign up for their own Tesla Model S, willing to put down $5,000 for a vehicle they won’t see until about 90 days later. In an effort to meet the demand, Tesla Motors’ top focus this year will be to improve manufacturing efficiency and upped the yearly quota to 21,000 vehicles.
Tesla Motors wouldn’t be able to make such claims if it weren’t for the fact that the Tesla Model S is such a great vehicle. They’ve managed to turn first quarter gross revenue just over $560 million, compared to just $30 million last year. This translates to $11 million net profits, compared to last year’s net losses of nearly $90 million.
Another concern of shareholders, addressed in a conference call and shareholder letter, was Tesla Motors‘ supposedly profiting from California Air Resources Board [CARB] Zero-Emissions Vehicle [ZEV] credits, which could have accounted for up to $250 million. Elon Musk cleared it up, explaining that just $68 million, or 12%, of total revenue, came from ZEV credits and that this number might even drop to zero by the end of the year.