Tesla Motors reported Q1 vehicle deliveries of more than 4,750 Model S units—exceeding the 4,500-unit Q1 target provided in the mid-February shareholder letter. (Earlier post.) As a result, Tesla is amending its Q1 guidance to full profitability, both GAAP and non-GAAP.
Tesla also announced that the small battery option for the Model S (earlier post) will not enter production, due to lack of demand. Only 4% of customers chose the 40 kWh battery pack, which is not enough to justify production of that version, the company said. The Model S originally offered three pack sizes: 40 kWh, 60 kWh and 85 kWh.
The customers who ordered this option will instead receive the 60 kWh pack, Tesla said, but range will be software-limited to that of a 40 kWh. It will still have the improved acceleration and top speed of the larger pack, and can be upgraded to the range of the 60 kWh upon request by the original or a future owner.
Tesla also announced that all 60 kWh cars have been and will be built with Supercharger hardware included; activation will require an upgrade. Tesla said it is taking a slight cost risk that ultimately all customers will want to buy the Supercharger upgrade. Supercharger is Tesla’s quick charging technology. Initially Tesla had positioned the Supercharger hardware as standard on Model S vehicles equipped with an 85 kWh battery and optional on Model S vehicles equipped with a 60 kWh battery.
I am incredibly proud of the Tesla team for their outstanding work. There have been many car startups over the past several decades, but profitability is what makes a company real. Tesla is here to stay and keep fighting for the electric car revolution.—Elon Musk, Tesla Motors co-founder and CEO