In the first half of 2019, Tesla lost 1.1 billion dollars. In the third quarter of this year, they turned their fortunes around by posting a $143 million dollar profit. This was a surprise to even bullish backers of the EV company, and could mark the beginning of profitability for the company. This news was relayed today when Elon Musk held a Q3 earnings call with investors.
Last month, Tesla reported that in Q3 they had delivered 95,200 vehicles. This was a record for the company, and came in above Wall Street expectations. Today’s earnings and profit surprise marks two positive surprises in a row, and investors are reacting by increasing the stock price by 18% to $299.41 in after-hours trading.
In previous quarters, record deliveries of the Model 3 have led to lower profit because Tesla makes less margin on their more affordable model. The Model S has always been the money-maker for Tesla, and its sales have not climbed anything like those of the Model 3. Today’s earning’s report hopefully shows that Elon and his managers have crafted more profit out of the Model 3, or at least ironed out inefficiencies in production and delivery.