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Tesla is still expanding aggressively and said turning a profit at this point is “not our primary mission.” Net income nonetheless increased 70% versus the previous quarter, with 5,150 Model S’s delivered to customers.The company improved production in the second quarter from 400 to almost 500 vehicles per week, and said further production gains are its “primary focus” going forward.”The increasing rate of production and margin are even more compelling than the overall revenue and profit numbers,” Kelley Blue Book senior analyst Karl Brauer said. “Tesla has clearly found an unmet market niche that’s capable of supporting the company, at least in the near term.”Tesla said it plans to open “several more” dealerships this year, including its first in China. The company began deliveries to Europe this week, and said that if the demonstrated demand there and in North America is matched in Asia, the annualized Model S sales rate could surpass 40,000 by late 2014.The Model S, for which prices start at $70,000, is currently the only car Tesla sells.

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