https://www.engadget.com/2018/10/24/tesla-turns-a-profit-in-q3-despite-musk/?yptr=yahoo
Tesla turns a profit in Q3 despite Musk
Tesla released its Q3 earnings at the close of trading on Wednesday and, despite a number of recent (and very public) gaffes from its CEO, the company managed to have an excellent financial quarter.
For one, the Model 3 was the top selling vehicle in terms of revenue (though that’s not hard when you’re competing against Civics and Sentras) and the fifth best selling vehicle when measured by volume, resulting in a net income of $312 million. Tesla does note that more than half of the vehicles that it received through Model 3 trade-ins were valued at less than $35,000 when new. This suggests that not only are consumers willing to pay a premium for Tesla’s products, they’re willing to spend significantly more than they had for their previous vehicles. The company hopes to drive the cost of the Model 3 down from its current $49,000 starting point to around $35,000 to better capture the low end of this market.
“In order to significantly increase the affordability of Model 3, we have decided to accelerate our manufacturing timeline in China,” the company wrote in its quarterly investor update letter. “We are aiming to bring portions of Model 3 production to China during 2019 and to progressively increase the level of localization through local sourcing and manufacturing. Production in China will be designated only for local customers.”
As for Tesla’s widely-reported difficulties getting its cars off the assembly line, the company boasts that it made 4,300 vehicles per week on average, 20 percent higher than its initial production targets. In all, Tesla delivered 56,065 Model 3s to customers during Q3.
“Labor hours per Model 3 decreased by more than 30% from Q2 to Q3, falling for the first time below the level for Model S and X,” the company wrote. “In Q4, we will focus even further on cost improvements while continuing to increase our production rate.”
Tesla also opened 4 new showrooms/service centers during Q3, bringing the total to 351 brick and mortar locations. This has helped drive a 20 percent increase of service revenue since Q2. The company also opened 44 new Supercharger stations, for a total of 1,352.
Looking ahead, the company reports that its goal of producing 100,000 Model S and Xs by the end of the year remain unchanged.
And endless quality control issues begin in 3….2….1.
Score 1 for starfcker. Congrats, Star. You stuck to your guns, and never wavered. You may have bragging rights, yet.
Thank you Tim
Easy to make a profit when you fuck your vendors.
O wait the article forgets that part.
In my area honda is selling its plug in electric car listed at 37000 base model for a lease of 125 $ per month nothing down. I dont think tesla can compete with that. Speaks to the demand. That is a giveaway price. No cheapie gas car can lease that cheap with zero down. Cant be much demand with that sort of pricing schedule.
How many shares of Tesla do us taxpayers own thru loans from Congress?
The title of this article should have been —- “I’m going to lick some Tesla weenie”.
I don’t know shit about how a company generates its financials. But, I will assume they can be easily manipulated. For example, Admin posted a tweet about Tesla’s account payables.
Speaking of Admin ….. only when our own Admin says that Tesla financials are good, ONLY THEN will I believe.
I sure as fuck won’t believe a dope smoking lyin’ piece of poop named Elon.
“The company hopes to drive the cost of the Model 3 down from its current $49,000 starting point to around $35,000 to better capture the low end of this market.” Great! Instead of paying 2.5x more than I payed for my house it will only be 75% more. Bargain I say. Better by a few and realllly save.
wolf richter’s take on this–
i know that if i were a short seller of this stock i would have the recently departed cfo deposed —