Tesla Shares Jump 24% After Maker Reports Profit

Luke Vandezande
by Luke Vandezande

Tesla’s stock price rose 24 percent Wednesday after the electric car maker reported its first quarterly profit.

The maker said that it’s first-quarter net income totaled $11.2 million, up from a $89.9 million loss a year before. Tesla’s revenue grew from $30.2 million in the same time period last year to $561.8 million in this quarter on sales of the Model S sedan.

A total of 4,900 Model S sedans were sold in the first quarter, and the maker said it raised the full-year sales forecast to 21,000 from the previous 20,000 figure.

But the brand’s success isn’t as straightforward as car sales translating to income. It gathered $68 million in zero-emissions vehicle credits sold to other automakers. Brand boss Elon Musk said the ZEV credits were a one-time-time gain.

Despite that, he also expects Tesla to manage a 25 percent gross margin return by the end of the fourth quarter.

[Source: Automotive News]

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Luke Vandezande
Luke Vandezande

Luke is an energetic automotive journalist who spends his time covering industry news and crawling the internet for the latest breaking story. When he isn't in the office, Luke can be found obsessively browsing used car listings, drinking scotch at his favorite bar and dreaming of what to drive next, though the list grows a lot faster than his bank account. He's always on <A title="@lukevandezande on Twitter" href="http://twitter.com/lukevandezande">Twitter</A> looking for a good car conversation. Find Luke on <A title="@lukevandezande on Twitter" href="http://twitter.com/lukevandezande">Twitter</A> and <A title="Luke on Google+" href="http://plus.google.com/112531385961538774338?rel=author">Google+</A>.

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