Tesla finally posts a profit

Tesla finally posts a profit

Tesla finally posts a profit

Revenue more than doubled from previous year to $6.8 billion to easily top analyst estimates, just as the profit did.

The Journal reported that the FBI is investigating whether the company made projections about its Model Three production knowing it would be impossible to meet those goals.

Talking about Tesla's future plans - which include the Model Y, a new Roadster, a lorry and a pick-up - Musk said the firm has "the most exciting product roadmap of any company on Earth".

The Federal Bureau of Investigation is examining whether Tesla misstated information about the production of its Model 3 sedans and misled investors about its business going back to early 2017, the Wall Street Journal reported, citing sources.

Tesla has been trying to minimize spending and maximize revenue, cutting jobs and restructuring while trying to fast-track vehicle deliveries of its new Model 3 to customers, to meet a promise Musk first made in May to be cash-flow positive and profitable in the third and fourth quarters.

The quarterly profit and higher cash generation advised Musk that Tesla can establish sustainable profits, without needing to constantly raise additional funds to pay towards debt and fund capital expansion.

Tesla struggled to ramp up Model Three production as promised, plagued by factory issues and reports of unfit working conditions. The American auto company has already recorded outstanding success with the Model 3 despite dealing with initial production struggles, and Model Y is expected to follow the same path. Analysts argue that Tesla has learned quite a lot from the success and challenges of the Model 3.

Last month the USA financial regulator, the Securities and Exchange Commission, accused him of defrauding investors when he claimed he had secured funding to take Tesla private.

Continues to question the USA demand for the Model 3 in a post-tax credit environment.

For the same period a year ago the company reported a loss of $619 million.

That was the same sentiment showed by Tesla's long-time critic and short-seller Citron Research, when it said earlier this week that it had a change of heart and is now betting the electric automaker's stock will rise. In his conference call, Musk brushed aside questions about what attributes the company was looking for in its next chairman who is supposed to be appointed by mid-November in accordance with the SEC settlement.

Musk called the results "historic", and praised the ingenuity and hard work of the company. In fact, a recent report noted that the company has to build a giant tent next to the factory in an effort to increase capacity as demand for the Model 3 sedan continues to increase. I thought Tesla might eke out narrowly positive free cash flow and turn a slight profit in the third quarter.

Tesla, the automaker that's always lauded for its wonderful success without actually generating money, turned a profit for the third quarter of this year.

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