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Tesla Grows Profit In Second Quarter, Delivers Europe’s First Model S

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First 2013 Tesla Model S delivered in Europe (Photo: @TeslaMotors on Twitter)

First 2013 Tesla Model S delivered in Europe (Photo: @TeslaMotors on Twitter)

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Tesla keeps moving from strength to strength, with sales of the company’s Model S electric sedan steadily increasing, profit levels remaining positive and expansion of the business running smoothly. This week, Tesla Motors [NSDQ:TSLA] released its financial results for the second quarter of 2013 where it was revealed the company recorded a net income of $26 million, compared to the $15 million for the first quarter.

Tesla also said gross margin improved from 17 percent in the first quarter to 22 percent in the second, and its automotive gross margin (excluding revenue from the sale of zero-emission vehicle credits) rose 8 percentage points.

Tesla doesn’t reveal sales numbers but said it delivered 5,150 Model S sedans for the quarter, an increase over the 4,900 delivered during the first quarter and quite a jump over the 4,500 units predicted. This brings the total number of Model S sedans on the road to just over 13,000.

Tesla also boasted its production had reached a rate of more than 500 cars per week and demand outside of North America was growing. This week also saw Tesla deliver its first Model S on European soil. The delivery took place in Norway, where Tesla expects to sell around 800 Model S sedans by the end of the year.

After Europe, Tesla will focus on launching in Asia, and if demand there matches what Tesla has experienced in North America and Europe the company could be looking at up to 40,000 orders annually within the next 18 months.

Looking further forward, Tesla is adamant deliveries of its Model X electric SUV will start by the end of 2014. After this, the company will focus on its entry-level model, which should be priced at roughly $35k before any subsidies and offer a driving range of at least 200 miles.

For a detailed look at Tesla’s second quarter results, head over to our sister site Green Car Reports.

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