Chief Executive of Tesla Motors Inc (NASDAQ:TSLA), Elon Musk talked about upcoming models and challenges after the electronic vehicle maker posted better than expected results on Wednesday. For the second quarter, Tesla posted second quarter non-GAAP profit of $26 million, or 20 cents per share, which beats the estimates for non-GAAP loss of 17 cents.
Revenue for the company came in at $405 million more than the analystss expectations of $383 million. In the second quarter, Tesla sold 10,500 Model S Sedans, and is expected to achieve its annual target of 40,000 by the end of 2014, as it moves into Europe and Asia.
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Tesla Motors Inc (NASDAQ:TSLA): Model X, Gen 3 and new markets
During the earnings call, Elon Musk discussed the soon to be launched Model X SUV, a $35,000 Gen 3 car and what it will face in Europe and China. Model S from Tesla Motors Inc (NASDAQ:TSLA) is priced at $70,000
The billionaire said that the company is making extreme efforts to refine the design of Model X and will be able to deliver a limited number of units towards the end of next year, and will produce full-fledged in 2015.
By spring, a right hand driver of Model S will be launched, and following that the China version will be launched, after which there will be a European version. There is also a right hand version for Japan.
For the $35,000 Gen 3 vehicle, Musk said that the road to its success is smooth and that the company is confident it can create a compelling car with a 200 mile range.
Tesla Motors Inc (NASDAQ:TSLA)’s European plans
Additionally, Musk said that sales pitching in Europe is not going to be very hard, and if someone orders a car in Europe he might receive it as early as November. This calls for upgrading production, according to Musk. He said that launch of Tesla Motors Inc (NASDAQ:TSLA) in Europe must be swift and customers should have a good experience with the car, trained people and service centers.
Musk on problem with suppliers and new car from BMW
Talking about challenges with suppliers, he said, “I feel like we are actually able to attract…an A team of suppliers because whereas previously we had some trouble attracting A teams of suppliers.” The suppliers had a common thinking that Tesla Motors Inc (NASDAQ:TSLA) is not here to stay for the long term and there were assumptions that Tesla will sell only 3,000 cars in its whole lifetime of Model S, which was actually Tesla’s number in the first quarter.
Musk said that BMW is launching an electric car in the market, which is a good move, “That’s cool. I think there is room to improve on the i3 and I hope that they do.” He added that other car makers should also bring electric cars in the market, which will deliver a sustainable mode of transportation to humanity.