Tesla Model S Outsells Audi A8, BMW 7-series and Mercedes S Class

The BMW S Series has been building growing and enjoying its share of the market since 1977 and the Audi A8 has been creating its own fan base since 1994, while Mercedes has been well established in the luxury vehicle business for years as well. Yet, the Tesla Model S, who has only been around for just a bit over one year has old sold them all this past quarter. While you might think that would be fantastic news for Tesla, they aren’t quite sure they want to be thrown into the “luxury class”. In fact, while the Model S starts at $69,900, Tesla is hard at work to create a model that will be closer to the $30,000 price point range. The Audi A8 starts at around $72,200, BMW 7 Series starts at $73,600 and the Mercedes S-Class starts at $92,350. As the results from the second quarter were released yesterday by Tesla, we will have to wait and see what they do with all that success.

Tesla Shareholder Letter States:

  • Record sales of 5,150 Model S vehicles in North America
  • Gross margin of 22% (non-GAAP), despite significant reduction in ZEV credits
  • On track to achieve Q4 gross margin of 25%, excluding ZEV credits
  • Strong balance sheet with almost $750 million in cash and no government debt
  • Primary focus is on expanding production to meet worldwide demand

The shareholders letter continues with, “While profits were still modest in absolute terms and not our primary mission, income increased by 70% from last quarter, driven by record Model S deliveries and a significant improvement in automotive gross margin. Non-GAAP net income in Q2 was $26 million or $0.20 per share, excluding one-time & non-cash items, and the effect of lease accounting. This compares to $15 million or $0.12 per share of non-GAAP net income last quarter. Since consensus estimates reflect non-GAAP results with lease accounting, our comparable Q2 non-GAAP net income was $7 million or $0.05 per share.”

Source Tesla Motors

Author: Jon Rogers

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