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Tesla Reports a Third-Quarter Operating Profit
Tesla Inc. reversed two consecutive quarters of operating losses with an operating profit of $261 million in July-September.
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Tesla Inc. reversed two consecutive quarters of operating losses with an operating profit of $261 million in July-September.
Quarterly revenue from automotive operations shrank 12% to $5.4 billion.
The company credits its profit to lower operating expenses for its high-volume Model 3 electric sedan. Still, the gain compares with a $416 million operating income in the same period in 2018. Net income for this year’s third quarter dropped 54% to $143 million.
Tesla reports deliveries for the period jumped 14% to 95,100 units. Sales of the company’s mass-market Model 3 electric sedan surged more than 40%, offsetting a 37% downturn in deliveries of the company’s costlier and lower volume Model S sedans and Model X crossover vehicles.
Tesla boasts that its huge assembly plant in Shanghai (pictured) was erected in a record 10 months and cost only one-third as much as the price of setting up its U.S. plant to build the Model 3.
The Chinese factory is ready to begin production now, and it is expected to achieve weekly output of 1,000 units by year-end.
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