After the closing bell today, Tesla (NASDAQ:TSLA) reported its second-quarter 2013 earnings, with the company increasing non-GAAP net income to $26 million -- up 70% from the previous quarter. That puts earnings per share at $0.20 for Q2, up from $0.12 EPS in the first quarter of the year.
Despite a reduction in zero-emission vehicle, or ZEV, credits, the company achieved 22% total non-GAAP gross margins -- up from 17% in the previous quarter. Tesla said it's on track to achieve 25% gross margins in Q4 2013, excluding ZEV credits.
In a statement to shareholders, Tesla said it sold 5,150 Model S vehicles in North America in the second quarter -- a record number for the company. Tesla increased its production rate by 25% in Q2, which raised vehicle production from 400 vehicles per week to 500.
Tesla has almost $750 million in cash and no government debt. In the shareholder statement, the company said, "Our financial position and balance sheet have never been stronger."
Going forward, Tesla expects to "significantly" increase R&D expenses in the next quarter, as product development for Model X and Model S right-hand drives increases. The company also expects SG&A expenses to rise as well, as Tesla grows its retail and service locations and its Supercharger facilities.
Fool contributor Chris Neiger has no position in any stocks mentioned. The Motley Fool recommends Tesla Motors and owns shares of Tesla Motors . Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.