Tesla Stock Surges After Strong Model S Sales Report

Tesla Motors S Model
Source: Teslamotors.com
Tesla Motors S Model

Electric-car maker Tesla Motors said it expects to report a first-quarter profit on both a net and adjusted basis following stronger-than-expected sales of its Model S sedan, sending its shares up nearly 16 percent Monday.

Tesla stock closed Monday at $43.93, a gain of $6.04.

Model S sales exceeded 4,750 units in the quarter, higher than the 4,500 Tesla had forecast, the company said Monday.

Tesla said in January that it would be profitable in the first quarter when expenses related to noncash options and warrants were excluded.

(Read More: Why the Tesla S May Be a Game-Changer)

The company also said the small battery option for the Model S would not enter production due to low demand.

The automaker, founded by Elon Musk, went public in 2010 and since then has narrowed its losses as production of the Model S sedan ramped up late last year.