Tesla has finally become profitable. Victory of Elon Musk?

Tesla has finally become profitable. Victory of Elon Musk?

October 25, 2018 0 By autotimesnews

Despite the many difficulties that Tesla has faced in recent months, it still managed to start making money: in the third quarter of this year, net profit was $ 312 million.

The news that Tesla came out on top has become today one of the main ones even on Russian federal TV channels – it’s really interesting to everyone how things are with “this American upstart”. Leading Tesla and a number of other innovative companies, Elon Musk is an idol and role model for some and a source of constant irritation for others, for example, for Bob Lutz, the ex-heads of GM, Ford and Chrysler, who for several years has been predicting Mask’s collapse and oblivion.

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This summer, the degree of informational tension around Mask and his automobile company seems to have reached a boiling point: Tesla could not launch its most affordable and key model in mass production – the Model 3, which collected about 450,000 orders. Formally, the production in California-based Fremont started last summer, but small-scale production, because of which the waiting times for deliveries to customers increased dramatically (by about a year), and accounting from quarter to quarter reported multimillion-dollar losses.

Errors in the calculations of the robotic line, sabotage by unscrupulous employees and delays in the supply of components did not allow the company to enter the planned release of five thousand Model 3 per week. Mask went to radical measures: he built an additional temporary workshop in the form of a huge tent with natural ventilation near the main shop and organized a Model 3 manual assembly conveyor there! As a result, by July of this year, Tesla managed to achieve the planned production rates and real sales statistics rose sharply: in the United States alone, 78 667 copies of Model 3 were sold in the first nine months of this year, of which approximately two thirds were in the third quarter.

The result was not long in coming: in Tesla’s latest quarterly report, there was a net profit of $ 312 million. This is not very much, but this is the first profit in the last two years, and it has greatly pleased investors: within a day, the value of Tesla’s shares has grown by almost 10%. Elon Musk immediately commented on this achievement: he promised that all subsequent quarters with Tesla would also be profitable.

Napoleon’s plans for the company: it has already staked out a place to build a plant in China, plans to bring the Model 3 to the European market next year and overtake the BMW 3 Series there by sales, is developing a compact crossover Model Y, which should be on the conveyor belt by 2020