Tesla has made significant progress on a Model Y, with a prototype set for production, and is continuing to develop an electric semi truck as well as a new roadster model, according to Musk. The SEC sued him for fraud, calling his claims "false and misleading", before reaching a settlement. It's still nowhere close to generating revenue and earnings to contend with the likes of Toyota Motor Corp. or BMW AG.
Musk called the results "historic", and praised the ingenuity and hard work of the company.
While Tesla tries to shake up the industry, long-established automaker Ford Motor Co. reported a net profit decline of 37 percent in the third quarter as sales slowed in the USA and China. The latter, by the way, gathered 500,000 deposits put down even before the auto manufacture started.
The flip to profitability in third-quarter could be the start of a narrative shift, as the market focuses on earnings and free cash flow generation potential. He opened by calling on executives responsible for efforts ranging from artificial intelligence and Autopilot to workplace safety, leaving less time than usual for the question-and-answer session with analysts. With ~ $890M in convertible notes due March 2019 with a strike price of $359.87 and ~$525M due November 2019 at $759.36, we expect TSLA to hope shares trade above the March 2019 conversion price and pursue a new fixed income instrument to address capex and the November 2019 converts. Up until last week, Tesla was selling "full self-driving hardware" on its site, which would give customers access to these capabilities as soon as the software become available and had regulatory approval.
The quarter "marks an inflection point", said Joe Dennison, associate portfolio manager of Zevenbergen Capital Investments in Seattle.
In July 2017, Musk said he was confident that Tesla would be producing 20,000 Model Three's a month in December 2017, in line with his previous pledge of having 5,000 vehicles a week by year's end.
Tesla Model Y to use Different Platform Than Model 3, With 95% Reduction in Wiring
The electric-car maker said Friday that it has cooperated and that it hasn't received a subpoena or request for testimony. The company already possesses "driver assistance" available cars that can take care of some tasks but retains the need for drivers to hold the wheel.
It's only the third time that Tesla has posted a quarterly profit in its eight-year history as a public company and the first time in two years. The vehicle may also feature falcon wing rear doors like the Model X.
Tesla's CEO remains confident regardless.
Musk said the company's profit didn't come at the expense of other things, such as cutting back on product development. "We can't thank you enough for your support".
"But I think even in Q1, I think we can be approximately flat in cash flow by end of quarter".