Mexican Media Brands
Tesla’s Losses Triple as Deliveries Rise
Tesla Motors Inc.’s third-quarter revenue rose 10% to $937 million, and deliveries of its electric cars jumped 49% to 11,600 units.
#economics #hybrid
Share
Tesla Motors Inc.’s third-quarter revenue rose 10% to $937 million, and deliveries of its electric cars jumped 49% to 11,600 units. But the company’s net loss tripled to $230 million.
Tesla says its product development spending rose by one-third in July-September. The company also spent nearly $400 million preparing its California factory to build the Model X crossover and to continue construction of its $5 billion battery making plant in Utah.
CEO Elon Musk says the company expects to deliver at least 17,000 cars in the fourth quarter, which would bring full-year sales to 50,000-52,000 units.
Musk reiterates that the company expects to unveil a prototype of its third car, the moderately priced Model 3, in March. Tesla’s ability to transition from a money-losing niche player to a profitable mass-market EV producer hinges heavily upon the success of the Model 3.
RELATED CONTENT
-
GM, Ford Evaluate Possible Economic Slump
General Motors and Ford say they have bolstered their cash reserves in case the trade war between the U.S. and China triggers a global recession.
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.
-
Mazda, CARB and PSA North America: Car Talk
The Center for Automotive Research (CAR) Management Briefing Seminars, an annual event, was held last week in Traverse City, Michigan.