Tesla announced a surprising Q3 earnings report

The world’s largest electric carmaker Tesla released its third-quarter earnings report yesterday, and it astonished everyone. As per the report, the firm earned the expected profit and running ahead of schedule for opening a new factory in Shanghai. As a result, the company stock witnessed a hike of 20% on the stock exchange.

The report shows a revenue of $6.3 billion and a profit of $1.91 per share while the firm was expecting revenue of $6.34 billion and a non-GAAP loss of $0.20 per share.

In the context of Tesla Model 3 sales, the company says, “Despite reductions in the average selling price (ASP) of Model 3 as global mix stabilizes, our gross margins have strengthened. Additionally, operating expenses are at the lowest level since the Model 3 production started. As a result, we returned to GAAP profitability in Q3 while generating positive free cash flow. This was possible by removing substantial costs from our business”.

For the production of Model Y, the firm mentioned that it is ahead of schedule and expected to launch the model by summer 2020. The firm is moving fast in equipment installation and other production-related tasks because of implementing the learnings taken from its Gigafactory Shanghai factory design.

Meanwhile, Tesla is also planning to produce a limited-run edition of its Tesla Semi truck in the upcoming year and going to announce the location of its European Gigafactory, where the production of electric vehicles is also planned to be done in 2021. Gigafactory Shanghai was completed in 10 months and is ready for production now.

Moreover, the firm is aimed to increase its deliveries in a sequential manner annually, with some expected fluctuations and determine the target of more than 360,000 deliveries this year. Stay tuned to Zigwheels USA for further updates.

Also read: 2019 Tesla Model 3 earned IIHS Top Safety Pick Plus tag