DETROIT (AP) — Shares of electric car maker Tesla Motors Inc. jumped more than 19 percent Monday after the company said sales are running ahead of schedule and it will post a first-quarter net profit.
The Palo Alto, Calif., company said Sunday night that first-quarter sales have exceeded 4,750 Model S sedans, above prior guidance of 4,500. Previously the company said it would be slightly profitable in the first quarter, excluding noncash option and warrant expenses.
Shares of Tesla were up $7.35, or 19.4 percent, to $45.24 in morning trading Monday. Earlier in the session the shares hit a record high of $45.47.
"There have been many car startups over the past several decades, but profitability is what makes a company real," Tesla co-founder and CEO Elon Musk said in a statement. "Tesla is here to stay and keep fighting for the electric car revolution."
Tesla, the brainchild of Musk, who founded PayPal and SpaceX, was selling two all-electric models last year, the $109,000 Roadster and the Model S, which starts at $49,900 after a federal tax credit. The Roadster was phased out as the Model S went on sale. The Environmental Protection Agency estimates that the Model S can travel about 265 miles on a single charge.