Tesla Motors announced that sales of its Model S vehicle exceeded the target provided in the mid February shareholder letter.
In February, the company said in a shareholder letter that it expected to deliver 4,500 units in the first quarter of 2013. Instead, it has delivered 4,750 units in the first quarter.
As a result, Tesla said it is amending its first quarter guidance to full profitability, both GAAP and non-GAAP.
Additionally, Tesla announced that the small battery option (40 kWh) for the Model S will not enter production due to lack of demand.
According to the company, “only 4% percent of customers chose the 40 kWh battery pack, which is not enough to justify production of that version.”
And those 4% percent of customers will receive the 60 kWh pack, “but range will be software limited to 40 kWh,” the company said. It can be upgraded to the range of the 60 kWh upon request by the original or a future owner.
In addition, Tesla said it make an upgrade to all 60 kWh cars. All models have been and will be built with Supercharger hardware included. The company said it is taking a slight cost risk that ultimately all customers will want to buy the Supercharger upgrade and receive unlimited, free long distance travel for life. Even for those that never drive long distances, this will improve the resale value of their car to people that do, Tesla said.
