TechnologyTell

Tesla Making Money, Raising Price of Model S

Sections: Powertrain

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Tesla's Model S EV

According to a tweet sent out by CEO Elon Musk, Tesla Motors is in the black as of last week and the company expects to continue building profits through the end of the year. (Photo courtesy Tesla Motors.)

Tesla CEO Elon Musk tweeted last week that Tesla Motors was “cashflow positive” for the week and that the company expected “continued improvement” through the end of the year, as reported in Automobile Magazine, among other outlets.

Meanwhile, the company announced it will be raising prices on its Model S all-electric performance sedan.

As we told you in an earlier post, the Model S was named Automobile Magazine’s “Automobile of the Year” and sister publication Motor Trend named the model its “Car of the Year.” Automobile said the company reported a loss of $111 million in the third quarter of 2012, just before the Model S won its accolades. So far, despite a waiting list of more than 13,000 who have put down a deposit on a Model S, the magazine said Tesla Motors has only managed to deliver 250 examples to paying customers.

Despite that slow start, a wad of private investors looking for a solid ROI, and the weight of federal Department of Energy loans on its shoulders, Tesla Motors said in a press release distributed Thursday, Nov. 29 that the price of a Model S would increase $2,500 ($2,600 if you live north of the U.S.-Canada border.) The company went to pains to illustrate that the rate of the price increase– the first in four years– was half the rate of inflation over the same time period.

Are you one of the 13,000 or so individuals who put down your hard-earned cash already? No worries. According to the press release from Tesla Motors, your price will be the same $57,400 (before tax incentives) that you agreed to originally.

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One Comment

  1. If you find a small enough increment of time, you can always declare “we’re making money”! Declaring victory in any given week is malarky, as the ins and outs of operating cash flow typically play out variously over a month’s time.

    John