While we’d be the first to say that electric cars, based on current technology and pricing, remain a long shot, the odds just improved for at least one electric car manufacturer. After missing a projection that the company would see a profit in November, Musk told followers on Twitter, “Am happy to report that Tesla was narrowly cash flow positive last week.”
According to Bloomberg, the message ended with, “Continued improvement expected through year end.” That makes sense, as sales of the Tesla Model S sedan are beginning to ramp up. A $2,500 price increase on the luxury sport sedan will go into effect in January, prompting buyers on the fence to place orders (or “make reservations,” in Tesla-speak) before year end.
Ironically, the news caused Tesla stock to drop by 2.1 percent at yesterday’s close in New York. “Narrowly cash flow positive” is still not enough to fill investors with confidence, and Tesla still has a ways to go in terms of ramping up production. The good news, however, is that the company appears to be on its way towards consistent profitability.
Kurt Ernst has been passionate about automobiles and driving nearly his entire life. His early years were shaped working in the family service station, though his real passion was auto racing. After graduating from the University of Colorado, Kurt spent a year club racing with the Sports Car Club of America, before focusing on a business career in marketing and project management. Later, his passion for writing and the automotive hobby found him freelancing for a variety of automotive news sites, including Automotive Addicts and Motor Authority, where his work was syndicated and appeared in several national publications. Recognized as an expert in the automotive field, Kurt joined Hemmings Motor News as an Associate Editor in 2013, and in the years since has progressed to Editor, Hemmings Daily; Managing Editor for Hemmings Motor News, Hemmings Classic Car, Hemmings Muscle Machines, and the Hemmings Daily; and now, Managing Editor, Hemmings Auctions. Kurt was instrumental in organizing the Hemmings Motor News Concours d’Elegance from 2013-2019, and has served as a judge at this event and The Vintage Racing Stable Concours d’Elegance. A Skip Barber Racing School graduate and prolific writer, Ernst is also skilled in copyediting, project management, brand development, and public relations.
