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Strong Model S sales should boost Tesla to full profitability

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tesla model s
tesla model s

It appears the storm of controversy over Tesla Motors' Model S that followed a negative New York Times review hasn't done much to harm Elon Musk's electric car startup. The company today announced that it sold 4,750 vehicles in February versus the 4,500 predicted, and as such now expects to become fully profitable for the first time ever this quarter. "Profitability is what makes a company real," said Musk. "Tesla is here to stay and keep fighting for the electric car revolution."

40-kWh model to come with capped 60-kWh battery

Tesla also said today that the entry-level Model S with a smaller, 40-kWh battery will not go into production, since only four percent of customers have opted for it over the 60-kWh and 85-kWh models. Those customers will now receive a 60-kWh version that has had its range artificially capped at the 160-mile limit of the planned 40 kWh battery, though the car will still benefit from improved speed and acceleration and can be "upgraded" to the 60-kWh range at a later date. Tesla hasn't said how much this will cost, but since the price gap between the two models was supposed to be $10,000, that sounds like it could be one of the more expensive software updates we've come across.