According to Bloomberg, Tesla actually earned money last week. CEO Elon Musk sent out a message on Twitter saying his company was "narrowly cash positive." That's big news for a company that hasn't turned a quarterly profit as of yet. Tesla is currently in the middle of stepping up production for its Model S sedan, and has announced the vehicle's MSRP will jump by $2,500, presumably to help fund that expansion.

So far, Tesla says it has built will build around 20,000 Model S units at its California production facility next year, though analysts say the ability to repeatedly generate a positive cash flow would go a long way toward the company's evolution into a "sustainable operating entry." So far, the Model S has garnered substantive praise, earning the Motor Trend Car of the Year Award among others. Tesla shares are up 19 percent this year over the same time period in 2011.


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  • 107 Comments
      GreenN_Gold
      • 2 Years Ago
      "...analysts say the ability to repeatedly generate a positive cash flow would go a long way toward the company's evolution into a 'sustainable operating entry.'" In other news, 2 + 2 is still 4. That's kind of like saying breathing goes a long toward sustaining life.
        m_2012
        • 2 Years Ago
        @GreenN_Gold
        A simple thing huh? Something most car makers can't seem to understand these days though. Make enough money to pay your bills including your future ones like retirements and benefits! I think what they were trying to point out is Tesla has made a sustainable business plan and will survive on its own without borrowing from the feds every year like other car makers. They are proving their plans and ideas worked.
          GreenN_Gold
          • 2 Years Ago
          @m_2012
          That was meant as a jab at the "analysts" and their insightful statement, and not at Tesla or Autoblog.
        ElectricAvenue
        • 2 Years Ago
        @GreenN_Gold
        Well, yes, it seems obvious, but you do have to consider that there are long-term costs that are sometimes not properly accounted for until it's too late. A business can be cash-flow positive for years, and then collapse when deferred maintenance (for example) finally hits them. Consider, say, a charter airline which doesn't properly account for engine overhaul cost. They're cash-flow positive and apparently making a profit of hundreds of thousands of dollars until all of a sudden the law requires that the engines be overhauled. Of course this tends not to happen in real life, because people in business DO understand the difference between cash-flow positive and making a profit! (Similarly, being cash-flow negative for a long time may be a good thing if the cash is being invested in something that will generate much larger long-term profits.)
          m_2012
          • 2 Years Ago
          @ElectricAvenue
          Agreed. With that, I do believe Tesla is going to be highly successful. Since this model has proven a hit, they can work on other cars that are just as good or better. A small range extender in the front boot or under where the far rear seats are could go a LONG way at making this a real car for everyone.
      James Ragsdale
      • 2 Years Ago
      Interesting that I saw one on the road for the first time today. Got to roll up and admire its 3/4 rear view while at a light waiting to get on the freeway. It's bodywork was liquid, the absence of door handles, it rolled back about an inch before lurching forward, there was a kid literally bouncing around in the back seat. I'd never seen a vehicle full size be electric. My neighbor has a Leaf, this thing looks like it could eat the Leaf. I see plenty of roadsters as I work across the street from Tesla Seattle. So good to see this car, see the profit.
      Tweaker
      • 2 Years Ago
      Huge editing error. Not 20,000. 2,000 and well behind this years projection.
        • 2 Years Ago
        @Tweaker
        [blocked]
      Bernard
      • 2 Years Ago
      Awesome work! Show the world Tesla! It's a shame Fisker doesn't have an Elon Musk in charge.
      Dave
      • 2 Years Ago
      So, the stopped paying their bills for one week. Next week they'll be doubly in the hole.
        Letstakeawalk
        • 2 Years Ago
        @Dave
        "And I think they can take a joke much better than you can." Elon Musk has no sense of humor. He holds grudges.
        m_2012
        • 2 Years Ago
        @Dave
        Do you feel better after making $hit up?
      Ron
      • 2 Years Ago
      Looks like buying that car of the year award from Motortrend is starting to payoff.
      RC
      • 2 Years Ago
      Go Tesla!
      Blake
      • 2 Years Ago
      Time to head into the archives and look at all the comments calling the Model S vaporware that will never be made
      ElectricAvenue
      • 2 Years Ago
      "So far, Tesla says it has built around 20,000 Model S units at its California production facility" Wow. I guess they built about 18,000 of those yesterday. Impressive. (Which planet are you living on, Zach?)
      Carac
      • 2 Years Ago
      Oh god, the Mayan's were right. Tesla being in the black confirms it!
        • 2 Years Ago
        @Carac
        [blocked]
          Letstakeawalk
          • 2 Years Ago
          GM is making a profit. "GM's profit of $1.5 billion, or $0.89 a share, was less than the $1.7 billion it earned in the third quarter of last year. But it was well ahead of estimates by Wall Street analysts, who predicted that GM would earn about $0.60 a share for the quarter, according to a Bloomberg survey." http://www.dailyfinance.com/2012/10/31/gm-profits-beat-estimates-as-favorable-signs-appear/ Chrysler is making a profit, too. "Chrysler Group LLC reported an 80% jump in its third-quarter profit over a year ago amid strong demand for its cars and pickup trucks and a continuing recovery in the U.S. auto market. The Auburn Hills, Mich.-based auto maker said it earned $381 million, up from a profit of $212 million for the same period last year. Revenue climbed 18% to $15.5 billion in the quarter ended Sept. 30. " http://online.wsj.com/article/SB10001424052970204840504578086821529252666.html
          • 2 Years Ago
          [blocked]
          ElectricAvenue
          • 2 Years Ago
          I think that's a bit too cynical. Clearly they were not making money when they were not producing the Model S. Deliveries have ramped up since then. Of course, as probably everyone is tired of reading by now, cash flow positive in one week and "profitable" are not the same thing. But I fully expect that they will report a profit in Q1 2013 - why don't we check back then?
          Grendal
          • 2 Years Ago
          Nicely said, ElectricAvenue. This is not a statement of how much they are rolling in the dough but it is another step toward Tesla becoming a profitable business. They just a week and a half ago went into full production. This indicates, while manufacturing at full production, that profit can be made. It's an important and newsworthy sign.
          • 2 Years Ago
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      raughle1
      • 2 Years Ago
      If I could harness all the energy poured into hating on this company I could power all 20,000 -- oops, I mean 2,000 -- Model S cars they've built. Do these things run on negative energy?
        Grendal
        • 2 Years Ago
        @raughle1
        Actually I don't think there is even one poster that hates Tesla. Plenty of others that do, but no one here posting.
          bluepongo1
          • 2 Years Ago
          @Grendal
          BTW @ Grendal did you click the link that SVX posted? in the comments of one of them is a cop car that drove off with a gas nozzel= LOL!!!!
          • 2 Years Ago
          @Grendal
          [blocked]
      ElectricAvenue
      • 2 Years Ago
      Also: "cash flow positive" and "actually earned money last week" are not the same thing. I could take out a million dollar loan today and be "cash flow positive", but if I don't do anything with that money I will obviously have a net loss over time. I think in Tesla's case, however, that being cash flow positive - assuming there aren't any major generators of cash other than from delivering cars - is a very important milestone. I expect that they'll be reporting profits after Q1 2013.
        • 2 Years Ago
        @ElectricAvenue
        [blocked]
          Grendal
          • 2 Years Ago
          And each Volt costs $250,000 to make. That's sarcastic. If you're going to use a positive statement and turn it into a negative then others should be able to do the same. This is a good sign for a starting company.
          • 2 Years Ago
          [blocked]
          • 2 Years Ago
          [blocked]
          Grendal
          • 2 Years Ago
          "One week in isolation tells me almost nothing about the success or failure of any given company." Nor is this supposed to. This is a new automaker saying they achieved a milestone. That's all. It is a big deal at this point. It doesn't prove they will, long term, be successful. It does prove that they are on the right track. I wasn't bashing the Volt. I was pointing out your bias and hypocrisy. You defend one but attack another. In this very same thread you immediately came to GM's defense when m2012 attacked them for the bailout and profitability.
          • 2 Years Ago
          [blocked]
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