Electric cars prove profitable for Tesla Motors

The US maker of high-end electric sports cars turned a profit for the first time last month, defying the recession
Mike Harvey, San Francisco
Tesla Motors, the maker of high-end electric sports cars, turned a profit for the first time last month, the company announced.
Despite the recession, the company shipped 109 of its Roadster cars, helping it to earn $1 million on revenue of $20 million.
As big car manufacturers rush to get all-electric models onto the market, Tesla said it was continuing to develop its Model S sedan version and to open regional sales and service centres.
President Barack Obama aims to put a million electric vehicles on the road by 2015 as part of the new US effort to cut greenhouse gas emissions linked to global warming.
Many wonder if electric vehicle sales will take off. In America carmakers sold about 160,000 hybrids in July, just 2.8 per cent of total sales, according to Autodata.
Last week Japanese car giant Nissan unveiled a new battery-powered car called the Nissan Leaf, which the firm said will be in showrooms in Japan, the US and Europe by the end of next year.
The car manufacturer said that unlike existing two-seater electric vehicles, the medium-sized hatchback would seat five adults, with a top speed of about 90mph and a range of more than 100 miles between recharges.
Last month Tesla began delivering the Roadster Sport, a high performance car that does 0 to 60 mph in 3.7 seconds, compared to 3.9 seconds for the standard Roadster.
The company claims that its $109,000 Roadster is faster than a Porsche and twice as energy efficient as a Toyota Prius. Tesla sells cars online and at showrooms in California, New York City, Seattle and London.
With an estimated range of 244 miles per charge and zero tailpipe emissions, the Roadster costs only $4 to recharge, the company said.
Unlike other US carmakers, Tesla has not benefited from the federal "cash for clunkers" program that gives Americans rebates for replacing older, gas-guzzling cars with newer, more fuel-efficient ones. Cars that cost more than $45,000 do not qualify for the rebates.
Tesla chief executive and Elon Musk said the privately-held company, based in San Carlos, California, would make significant deliveries to European customers while expanding its presence in several countries.
“We achieved a bottom-line profitability thanks to a tremendous amount of hard work by the Tesla team to improve quality, while simultaneously reducing costs on the Roadster,” he said. “This also shows that there is strong demand for a car that is unique in offering high performance with a clean conscience. Moreover, customers know that in buying the Roadster they are helping fund development of our mass market electric cars.”
Tesla, which in June won Department of Energy approval for $465 million in low-interest loans, hopes to start shipping its Model S in 2011. The all-electric sedan will have a base price of $49,900, roughly half the price of the Roadster.
In addition to the Model S program, Tesla is jointly developing an electric version of the Smart car with Daimler. The first of an initial test fleet of 1,000 electric Smart cars are expected to be on the road in late 2009.