Tesla Motors announced yesterday Model S sales surpassed the target established in February. The small battery pack will not enter production.

Tesla Motors announced yesterday Model S sales surpassed the target established in February.

The target mentioned in the shareholder letter was 4,500 units but Tesla Motors was able to sell 4,750 cars. This was Tesla's first ever profitable quarter (both GAAP and non-GAAP), despite the dispute with The New York Times which could have affected sales.

More importantly for potential customers, the American electric vehicle automaker has decided to axe the small 40 kWh battery pack due to low demand. Interestingly, those who ordered this pack will receive the 60 kWh variant which will be software-limited to the range of the 40 kWh.

This is really good news since it will bring the higher top speed and better acceleration of the larger pack but for the same money. Upon request, those who ordered the 40 kWh can switch to the regular 60 kWh without the restrictions. Tesla also mentions all 60 kWh battery-equipped cars have been fitted with the Supercharger hardware.

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