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Tesla Delays Model X But Turns a Surprise Profit

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STAN HONDA—AFP/Getty Images The Tesla Model X is introduced at the 2013 North American International Auto Show .

New SUV won't be delivered until late 2015

Tesla’s upcoming Model X SUV has been delayed again, the company announced in its quarterly earnings report. The new vehicle is now slated for release in Q3 of 2015, a delay of several months.

In a letter to shareholders, CEO Elon Musk wrote that Tesla’s difficulty rolling new products out quickly was a “legitimate criticism” of the company, but said that the car maker’s practices would not change. “We prefer to forgo revenue, rather than bring a product to market that does not delight customers,” Musk wrote. “Doing so negatively affects the short term, but positively affects the long term.”

Tesla’s revenue for the quarter missed analysts’ expectations slightly at $852 million, but was nearly double the same period last year. The company also posted a surprise profit, generating adjusted earnings of two cents per share. Analysts had expected a loss of one cent per share.

The company delivered 7,785 of its flagship Model S vehicles during the quarter. It expects to deliver 33,000 vehicles for all of 2014.

 

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