New Tesla Model Deliveries
Tesla Model deliveries increased by 63% in the third quarter of this year, which has been a record for the electric-car brand led by Elon Musk. In total, Tesla delivered 26,150 vehicles during this period. The 25,336 new deliveries came from the Model S and Model X lines. This is an increase from 15,800 units during the same quarter last year.
As a result of the increase, Tesla reported $6.8 billion in revenue for this period, with $2.3 billion in gross profit and $21 million in income from operations. The company expects net income to be between -$400 million and $300 million for this period.
The New Tesla Model 3
The strong numbers out of Tesla can be attributed to the release of its new Model 3 line earlier this month, which starts at $35,000 USD before government incentives and offers 215 miles per charge on a single battery charge. Production is expected to begin next year. In addition to the release of the Model 3, demand has been high for existing lines as well as direct-to-customer orders.
In a statement, Tesla said, "While we remain mostly a drop-in replacement business in North America, with all of our deliveries being S/X, about half of the orders for Model 3 have been from new customers." This means that half of their sales are to customers who have not purchased a Tesla, which is a promising number for the future of the company and its customers.
The electric-car company responded to critics who say that Tesla's high volume of sales is due to reduced competition from other automakers in the U.S., something that is unlikely to continue as major manufacturers such as Audi and Volvo release their own lines of electric cars. This, combined with the company's expansion into other markets such as China and Europe, seems to indicate that Tesla is on the way up.
The electric-car maker did report $603 million in capital spending during this period, which was expected. Capital expenditures will continue to rise due to the need for more equipment, facilities, and infrastructure to support the production of the Model 3. Additionally, Elon Musk responded to reports that he had announced a 10 percent workforce reduction. He stated that it would be inaccurate to say there were layoffs because employees who are not able to meet their annual goals are transitioned out. "They may find themselves at a different company," said Musk when asked about his previous tweets. He also noted that no factory jobs will be affected by
In conclusion, Tesla has reported higher numbers for this quarter than any other automotive manufacturer, which can be attributed to strong demand from consumers and new releases from the company itself. The future of Tesla is looking bright as a result of their successful Model 3 line and their continued expansion into other markets and car lines. As the world's most valuable car company, Tesla is creating waves. Expect a lot of controversy and drama at this firm as it evolves into something larger.