Tesla Posts 4Q Profit as Revenue Soars

Tesla Inc. reports its revenue in last year’s final quarter soared to $6.3 billion from $2.7 billion in the same period in 2017.

Quarterly net income attributable to shareholders swung to a $139 million profit, reversing a year-earlier loss of $675 million. The company’s operating margin jumped from -15% in the second quarter to +5% in the third and fourth periods, approximately on par with such rivals as Audi, Daimler and Jaguar Land Rover.

Tesla says its $44,000 Model 3 electric sedan—critical to the company’s financial success—overcame highly publicized production problems last year to become America’s best-selling passenger vehicle in terms of revenue during the second half of 2018.

The carmaker has sold about 140,000 Model 3s to date, including 63,400 units in the fourth quarter. Tesla expects to achieve sustainable output of 7,000 Model 3 cars per week by the end of this year. The company says labor hours per Model 3 produced plunged 65% in the second half of 2018 as output rose.

Tesla reports it delivered 27,600 of its electric Model S sedans and Model X crossover vehicles in October-December. Full-year retail sales of the two models totaled 99,500 units.