Production is expected to begin by the summer of 2020.
Tesla CEO Elon Musk redeemed himself as the company crushed its metrics in the latest quarter.
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Shares soared in the extended session late Wednesday as the company returned to profitability a major score for Musk.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 254.68 | -0.90 | -0.35% |
The maker of electric vehicles earned $143 million compared to a loss of $408 million in the prior quarter. Per-share profit rebounded to $0.78 from a loss of $2.31.
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The company noted that management was more disciplined with costs and that in part helped turn things around.
“Last year, our story was about ramping the Model 3. While total volumes are expected to grow by approximately 50% in 2019, this year our focus has been cost control and preparing for our next phase of growth. Despite reductions in the average selling price (ASP) of Model 3 as global mix stabilizes, our gross margins have strengthened,” the financial release detailed. “Additionally, operating expenses are at the lowest level since Model 3 production started. As a result, we returned to GAAP profitability in Q3 while generating positive free cash flow. This was possible by removing substantial cost from our business.”
In terms of deliveries, the company stated: “We are highly confident in exceeding 360,000 deliveries this year” which also pleased investors.
On the conference call, the company noted orders in the current quarter are higher than last quarter.
Trading on Thursday should help Tesla shares curb annual losses of about 23 percent.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| F | FORD MOTOR COMPANY | 9.21 | +0.14 | +1.54% |
By comparison, Ford also reported results, slashing its full-year profit forecast. The company cited headwinds including higher warranty costs, higher incentives in North America and lower volumes in China.
