Tesla Announces Third-Quarter Profit Of $312 Million, Narrowly Misses Production Goal

by Heather Platt | Posted on Thursday, October 25th, 2018

Tesla released its quarterly earnings report on Wednesday afternoon, showing that the American automaker was able to turn a net profit of $312 million while combating logistical issues and even Uncle Sam itself.

Tesla

On average, Tesla was able to pump out a steady average of around 4,300 Model 3s per week, just 700 units shy of it’s 5,000 per-week goal—which was allegedly exceeded during the final week of the quarter.

Shares skyrocketed during after-hours trading, gaining nearly 15 percent as it moved from its closing position of $288.5 per share to $331. Shares are up 30.1 percent overall since Monday.

Tesla states that it ultimately aims to refine its processes and targets a 25 percent margin on the Model 3. The automaker goes on to say that despite an increase in tariffs affecting its bottom line, it expects the margin to remain steady throughout the remainder of the fourth quarter.

Tesla’s pockets also grew fatter during the quarter, swelling to $3 billion in reserves after it gained an additional $731 million in liquid revenue. This number is expected to remain steady despite Tesla paying back $230 million in loans before the year’s end. It’s important to note that Tesla has recently penned a deal with the Chinese government to break ground on its newest Gigafactory in Shanghai. Ultimately, this project is estimated to cost a staggering $2 billion, which Tesla plans to fund by raising capital in Asian debt markets.

At the company’s last quarterly earnings call, CEO Elon Musk noted that Tesla’s goal was “to be profitable.” Mission accomplished, it seems.

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