Can Tesla Shift to Higher Volume?

Tesla says stronger sales will increase profits for the quarter, while it cuts the lowest-range Model S electric sedan.

Tesla Motors had an Easter present for its investors: due to better-than-expected sales of its Model S, it raised profit forecasts for the first quarter this year. It also dropped the low-end version of the Model S, hinting at challenges the company may face as it seeks to make a lower-priced electric car.