Tesla Records First Quarterly Profit In Two Years Thanks To Model 3 Demand

Tesla has just posted the third profitable quarter in its history on the back of demand for the Model 3.

The electric automaker revealed that it generated $6.8 billion in revenue in the third quarter of 2018 and secured $311 million in profits. Not only is that the most the company has ever recorded in a quarter, but it is also the first profitable quarter in two years. Tesla also sold $52 million worth of zero-emission vehicle credits to other automakers during that period.

In a letter addressed to investors, Tesla chief executive and chief financial officer Deepak Ahuka said a successful third quarter is a huge moment for the company.

“Q3 2018 was a truly historic quarter for Tesla. Model 3 is attracting customers of both premium and non-premium brands, making it a truly mainstream product.”

The key reason for the improved financial position are the huge leaps made in production of the Model 3. In the third quarter, a total of 56,065 Model 3s were delivered in North America. In addition, the company says it is now locking in margins greater than 20 per cent for the Model 3 thanks to the reduced cost of raw materials and by limiting the number of hours needed to build the entry-level sedan. Tesla now builds a Model 3 quicker than a Model S or X.

Thanks to these improvements, Tesla says it will be ready to start taking orders in Europe and China for the Model 3 before the end of the year.

Despite a successful quarter, it won’t be all sunshine and rainbows moving forward. Tesla currently has more than $10 billion in debt and is still developing the Model Y, Semi and new Roadster. Additionally, it has to build new factories in Europe and China, leading some to suggest it may be forced to raise money soon, The Verge reports.

more photos...
  • Mr. EP9

    Kind of late on the news, but congrats for Tesla anyhow. It’s the third time they’ve turned a profit though. And unfortunately in Tesla’s case, all the other two profitable quarters were followed by Tesla losing money the next quarter. But maybe now this time will be different and they’ll keep things going positively. I doubt it given their history but come Q1 of 2019 we’ll see if this is the beginning of a turn around for this company’s finances.

    • ➡️ProtectOurHeritage⬅️

      They’ll need to make some serious profit if they are going to repay $10 billion of debt! 😂😂😂

      • Mr. EP9

        Absolutely. They’re going to need some serious cash flow as those debt payments are coming up.

  • EyalN

    Waiting list of half a million people and people are still ordering model 3?
    when are they going to get the cars they order now? 2050?

    • SO DON’T PUT YOURSELF ON THE LIST. ALL THESE WHINERS. GM SCREWED UP THE WITH EV1 AND TESLA WAS FORMED TO PICK UP WHERE THEY LEFT OFF.

    • Dude

      If you want to play a fun game, order a Model 3 and a new Supra and see which one comes first

  • Richard Alexander

    …at the end of of the largest credit bubble in human history. Lets see what the appetite for novelty is like in a full blown recession…..

    • Big Black Duck

      this applies to all conspicuous consumption goods. .. indicating it here gives you a false sense of intelligence

Tesla Model S Seems To Self-Combust While Sitting In A Parking Lot

The blaze destroyed the Tesla Model S and at least two other vehicles parked close to it.

Uber’s Self-Driving Unit To Be Spun Off After Toyota, Denso, Softbank Investments

Following this investment, the Uber Advanced Technologies Group has been valued at $7.25 billion.

Police Officer Stops California Highway Traffic, SUV Driver Totally Ignores Him

The police officer halted traffic to remove an exercise machine from the road, but not everyone stopped.

Lamborghini Urus Is Quite Impressive – But Is It A Real Lambo?

Lambo’s super SUV may go like crazy, but it could do without some niggles not befitting a $200k car.

Small Changes Make Pontiac Aztek Look Nicer. Just Kidding – It’s Still Ugly As Sin

The Pontiac Aztek simply cannot be made to look nice, no matter how hard you may try.

1,100 WHP Nissan GT-R Clocks 235 MPH Top Speed With Ease

With a different final drive, this heavily tuned GT-R might have been able to crack the 250 mph mark.

Porsche 911 GT3 And GT3 RS Go To War At The Drag Strip

Both the 911 GT3 and GT3 RS can clock 10-second quarter mile times – but the winner is…

Pickup Truck Tries To Cross To The Opposite Lane, Ends Up Slamming Into Camry

We imagine this pickup truck driver in Canada was left rather red-faced after this crash.

2019 Mercedes-Benz CLA: More Than Just A Pretty Face?

The second-gen CLA is certainly more stylish than its predecessor, but has it improved in other areas too?.

Mazda CX-7 Almost Takes Out Two Cars While Doing A U-Turn

This CX-7 driver came very close to taking out the cammer and a Toyota MR-2, then lost it and hit the median.