60 million electric milesYesterday, after the stock markets closed in the U.S., Tesla Motors released its second quarter results, surprising Wall Street analysts who expected the company to have an adjusted loss (if you exclude one-time & non-cash items) of about $0.20 per share. Instead, Tesla had a $0.20/share adjusted profit, or $26 million, a 70% increase over last quarter, their first profitable one. They delivered 5,150 Model S electric sedans in Q2, significantly beating the forecast of 4,500 vehicles.
In a letter to shareholders, Elon Musk writes: "Over 13,000 Model S customer vehicles are now on North American roads and have logged nearly 60 million miles. This week we started our international expansion by delivering the first Model S vehicles to customers in Europe. As demand for Model S grows, we are continuing to expand our manufacturing capacity as well as our global footprint of service center, retail and Supercharger networks."During a conference call to discuss the quarter, Musk made clear that Tesla had more problems with increasing supply than with demand. They're selling all the EVs they're making, but cranking up production is a huge logistics challenge, including because some of their suppliers can't keep up. Musk also believes that over time, 2/3 of demand for their electric cars will come from outside of the U.S., which means there's still a lot of growth left because they've just started to deliver cars to the European market.
These good news are reflected in the stock price (TSLA), which shot up more than 17% as I'm writing this, and 364% year-to-date. Not bad for a company that everybody said would go bankrupt a few years ago...