Published: Sat, October 27, 2018
Money | By Ethel Goodwin

Tesla Model 3 production reportedly being investigated by the Federal Bureau of Investigation

Tesla Model 3 production reportedly being investigated by the Federal Bureau of Investigation

Tesla still faces a myriad of challenges, but has just demonstrated it is capable of generating positive earnings and cash flow as it shifts to a high- volume business model.

Tesla announced on Wednesday that it had the most profitable quarter in its history. "And so Tesla had a good day, and I think Tesla has a lot of upside".

Higher tariffs have hit demand for Model S sedans and Model X crossovers imported into the country. He then went online again and changed his payment method from a bank loan to cash.

As far as revenue is concerned, Tesla during the quarter generated $6.8 billion in revenue, easily besting estimates from analysts on Wall Street.

Regarding the Model Y, Tesla plans to use their planned factory China to not only manufacture the Model 3, but also the e-SUV, as a locally submitted application shows.

Electric-car maker Tesla Inc on Wednesday reported a "historic" quarterly profit driven by demand for its mass market Model 3 as the company looks beyond its U.S. home base to Europe and China.

Electric auto advocates are wildly pointing to this news, loudly declaring that automakers should note that electric vehicles are profitable to make.

Musk has previously said the Model Y could be produced as soon as March 2019 - albeit in a tongue in cheek tweet from May 2018, in which he threw out the date March 15 as a reference to the Ides of March (perhaps because the introduction of a Tesla SUV will amount to the assassination of other carmakers?). He finally received his Model 3 on October 11.

Tesla's better-than-expected third-quarter results are reminiscent of the third quarter of 2016, in which transitory factors helped to drive positive earnings and cash flow, although those were not sustainable, and "is likely the same case now". However, depending on the demand for the Model 3, by the time 2020 gets here, it may be too hard to use the Nevada factory for the Model Y.

Dozens of Tesla Model 3 sedans are reportedly being held in this Union Pacific freight depot in Salt Lake City.

The price drop riled up some customers who ordered the Model 3 Performance with the performance upgrade package, or took delivery before Friday's price cut. "We note the competitive market will be steeper when Tesla launches in Europe given the bevy of new introductions from European OEMs". Operating costs were also significantly lower than our model.

Long- term, believe TSLA remains uniquely positioned to emerge as a vehicle ecosystem platforms leader.

As to cumulative deliveries, Tesla during the quarter gone by delivered 56,065 Model 3s to customers and a total of 70,000 vehicles overall.

In order to increase the affordability of the Model 3, Tesla accelerated its manufacturing timeline in China. Accounts payable-money Tesla owes to its suppliers-ballooned from $2.4 billion to $3.6 billion over the a year ago.

In the future, Tesla will have a growing portfolio of products, with no single product accounting for the lion's share of its revenue or profits.

Like this: