Tesla Motors, the startup electric car company developed by business visionary Elon Musk, announced that they sold over 10,000 vehicles for the first time in quarter, with 11,507 vehicles being delivered during the first quarter of 2015. This represent a 52% surge in car deliveries which is a marked increase year over year.
Tesla only has one vehicle for sale, the Model S sedan, but expects to release a second vehicle, the Model X which will be a SUV in the next three to four months. While priced highly compared to traditional vehicles, Tesla models provide fuel savings and have top of the line innovations in technology, which appeal to many auto buyers who are looking for a differentiated vehicle to drive. The Model X is expected to appeal to mothers and families who would use the vehicle for short excursions, as opposed to as a novelty luxury vehicle like the Model S is used as.
Tesla has indicated that the increase in the number of vehicles that they are selling is not an indication that the company is now profitable. The company has a history of losing money and has lost over $150 million in the first quarter, despite the record sales that occurred this month. Sam Tabar has heard that to improve their profitability and revenues, the Company has also previously announced that they would be selling a home battery using their battery technology that will help to store and supplement a home’s electricity.