Tesla Turns Profit: Tech Winners & Losers
NEW YORK (TheStreet) -- Tesla Motors
The Palo Alto, Calif.-based Tesla announced sales of its Model S vehicle have exceeded the target provided in mid-February, as the company sold more than 4,750 Model S vehicles in the first quarter, up from a previous outlook of 4,500 cars. As such, the company raised its first-quarter outlook to "full profitability" on a non-GAAP and GAAP basis. Tesla had previously said it expected to be "slightly positive net income, on a non-GAAP basis. We also expect to be near breakeven on cash flow from operations."
"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," said CEO Elon Musk in a press release.
"In the past two weeks, we've received a lot of feedback regarding repair and warranty issues in China. We have carefully reviewed these together with the company's 'Three Guarantees' and have also looked closely at our maintenance policy and management specifications for authorized Apple Service Providers. We are aware that flaws in our external communication have led to the appearance of arrogance and a lack of concern for customer feedback. We express our sincere apologies for any concerns or misunderstandings this gives consumers," Cook wrote in the letter posted on Apple's Chinese-language website.
The letter talks about an improved iPhone 4 and iPhone 4S repair policy, providing concise, clear information regarding the official repair and warranty policies on Apple's Web site, improving supervision of training of Apple Authorized Service Providers and improving related issues to ensure consumers can easily contact Apple Feedback Service.