The Tesla Model S has managed to defy all expectations and even its own best projections by selling 4,750 Model S sedans. In terms of comparable sedans, this was more than Mercedes-Benz, BMW or Audi.

Critics had argued the Tesla Model S was too expensive, starting at $70,000 and that few people would be willing to invest in such an expensive electric vehicle when much cheaper alternatives are available like the Chevy Volt and Nissan Leaf. Like all EV's in the U.S., the Tesla Model S enjoys a $7,500 federal tax credit, which helps defray some of the car's premium price tag.

CNN notes the Mercedes/Audi/BMW comparison should be taken with a grain of salt since it's not exactly an apples-to-apples comparison:

This is not a perfect comparison, of course. Actual selling prices for the Mercedes S-class sedan start toward the upper end of the Tesla Model S price range, according the the auto pricing Web site TrueCar.com, while prices for the other cars are at the lower end. And nobody gets a $7,500 federal tax credit for a buying an S-class or an A8. Also, Mercedes-Benz, BMW and Audi each sell a full range of cars and SUVs while Tesla buyers have only one model to choose from.

On Wall Street, news of the better-than-expected sales numbers sent shares of Tesla soaring, with a 24 percent increase in the hours following the Q1 earnings report. Tesla states that it generated $11.2 million in sales from the 4,750 Model S sedans that were shipped.

The positive news is much needed for Tesla. Q1 was the firm's first-ever profitable quarter, all the more impressive given the company's recent $13 million payment to the government towards a $465 federal million loan.