Tesla Exceeds Model S Sales Target, Scraps Lower-Range Model

Sales of the Model S exceeded earlier estimates by more than 5% in the first quarter, Tesla Motors (NASDAQ: TSLA  ) announced today. In mid-February, the company had put estimates for Q1 at 4,500 units, but the number ended up surpassing 4,750.

"As a result, Tesla is amending its Q1 guidance to full profitability, both GAAP and non-GAAP," said the company.

Tesla also announced today that it would not bring to market the lower-range Model S vehicles, due to low demand. Only 4% of customers chose the 40 kWh battery pack, according to the company, and that's not enough to justify production of that version. "Customers are voting with their wallet that they want a car that gives them the freedom to travel long distances when needed," Tesla said.

Instead of building low-range Model S units, customers who ordered the vehicle will receive the same 60 kWh battery pack as the longer-range models, but software will prohibit the larger battery pack from achieving the longer ranges. According to Tesla, the vehicles will "still have the improved acceleration and top speed of the bigger pack, so will be a better product than originally ordered, and can be upgraded to the range of the 60 kWh upon request by the original or a future owner."

The company also reported that all of the current and future 60 kWh battery pack models have been built with hardware that's compatible with Tesla's Supercharger charging feature that allows customers to have "unlimited, free long distance travel for life," if they upgrade to this option.


Read/Post Comments (0) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2338715, ~/Articles/ArticleHandler.aspx, 9/27/2016 4:47:29 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 7 hours ago Sponsored by:
DOW 18,094.83 -166.62 -0.91%
S&P 500 2,146.10 -18.59 -0.86%
NASD 5,257.49 -48.26 -0.91%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/26/2016 4:00 PM
TSLA $208.99 Up +1.54 +0.74%
Tesla Motors CAPS Rating: **