The commercial viability of the electric car sector was further underlined on Friday with the news that US firm Tesla Motors achieved profitability for the first time during July.
The high-profile manufacturer of the Roadster, the electric sports car that is faster than a Porsche and boasts a range of 244 miles between charges, said that it delivered profits of $1m (£600,000) on sales of $20m last month.
The profits were attributed to a record 109 Roadsters being shipped during July – a performance the company predicted would soon be overshadowed as a result of "significant" pending deliveries to new customers in Europe.
The company also indicated that the profits were recorded independently of the $465m in low-interest loans that Tesla was recently awarded by the US government and has been earmarked for the development of the Model S – an electric Sedan that the firm is positioning as an affordable mainstream alternative to the Roadster.
Tesla chief executive and product architect Elon Musk hailed the financial performance as further evidence of the expanding market for electric vehicles.
"There is strong demand for a car that is unique in offering high performance with a clean conscience," he said. "Moreover, customers know that in buying the Roadster they are helping fund development of our mass market electric cars."
The news completes a remarkable turnaround for the company, which late last year was the subject of rumours that it was facing potentially life threatening cash flow issues.
Since then the company has embarked on a breakneck recovery, securing more than $40m in fresh funding, inking a partnership with Daimler to co-develop an electric version of its Smart car, shipping a new version of the Tesla, and pressing ahead with plans for the Model S.
Fresh funding further bolsters plans to build new factory for Model S electric sedan 17 Sep 2009Electric sports car manufacturer announces that it is on track to become profitable by the summer 16 Feb 2009Electric car firm announces plan for $100m IPO as it looks to throw everything behind Model S development 01 Feb 2010Electric car firm continues expansion push with announcement of new Palo Alto HQ 19 Aug 2009
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