Tesla III Quarter Financial Report Shows First Profit This Year
Tesla released its third-quarter financial report this year, which suggests that the electric car manufacturer made its first quarterly profit in 2019. Tesla’s revenue from July to September amounted to 6.3 billion dollars, almost unchanged compared with the second quarter. The company's profit was $143 million, but the last time the company made a profit in the fourth quarter of 2018, so this indicator can be called successful. Tesla explained the way out of the “red zone” of losses by reducing operating costs, which have been the lowest since the Tesla Model 3 launch. Apparently, Tesla reduced staff costs as well. Tesla's cash reserve now stands at $5.3 billion, $300 million more than the record high of the previous quarter. Earlier, the company reported that the volume of deliveries of cars in the third quarter was about 97 thousand units, which slightly exceeds supplies in the second quarter. Tesla sold overall more cars in the three quarters of 2019 than in the same period in 2018. As expected, a significant part of sales came from the relatively affordable Model 3 electric car, while Model S and Model X sales fell nearly 40% in the third quarter. Earlier, Tesla founder Elon Musk predicted that the company will sell from 360 to 400 thousand cars this year. To achieve this, Tesla will have to set new sales records in the fourth quarter. The early launch of the first Tesla factory in China can help the company - it will launch the Model 3 and the new Model Y crossover. The release of cars in China will allow Tesla to sell them cheaper than imported electric cars, which should increase the demand in the local market. Given the success of the company, Tesla said that the launch of Model Y production was postponed from autumn to summer 2020.