Skip to Content

Tesla’s Explosive Revenue Suggests a Brighter Future

The maker of the Model S is cranking out cars and may be on track to turn a profit.
February 20, 2013

Last year Tesla Motors struggled to meet manufacturing targets for its only production car, the Model S, and it recently got hit with a negative review in the New York Times after a journalist ran out of power during a test drive (see “Tesla Blames New Delays on Production Difficulties” and “Musk-New York Times Debate Highlights Electric Cars’ Shortcomings”).

But things appear brighter now. Tesla announced today that its revenues have jumped by 500 percent and that it’s now making enough cars per week to deliver 20,000 of the vehicles by the end of this year. It also said it expects to make a small profit next quarter. Based on its gross margins, it seems that Tesla is now actually making its cars for less than it’s selling them for, rather than losing money on every one it makes, as had been the case previously. Improved productivity and lower costs for parts are helping. But when you factor in all of the company’s costs, including R&D and administration, the automaker still lost money—about $90 million.

Tesla says it now has 15,000 orders for the car, probably helped by receiving major awards and being featured on the cover of plenty of magazines. Who knows? The negative review and the dust-up that followed probably helped, too, if only to draw attention to the company. 

Keep Reading

Most Popular

Large language models can do jaw-dropping things. But nobody knows exactly why.

And that's a problem. Figuring it out is one of the biggest scientific puzzles of our time and a crucial step towards controlling more powerful future models.

How scientists traced a mysterious covid case back to six toilets

When wastewater surveillance turns into a hunt for a single infected individual, the ethics get tricky.

The problem with plug-in hybrids? Their drivers.

Plug-in hybrids are often sold as a transition to EVs, but new data from Europe shows we’re still underestimating the emissions they produce.

Google DeepMind’s new generative model makes Super Mario–like games from scratch

Genie learns how to control games by watching hours and hours of video. It could help train next-gen robots too.

Stay connected

Illustration by Rose Wong

Get the latest updates from
MIT Technology Review

Discover special offers, top stories, upcoming events, and more.

Thank you for submitting your email!

Explore more newsletters

It looks like something went wrong.

We’re having trouble saving your preferences. Try refreshing this page and updating them one more time. If you continue to get this message, reach out to us at customer-service@technologyreview.com with a list of newsletters you’d like to receive.