Tesla posts net profit for fifth straight quarter
<p style="text-align: center;"><img title="1603344069137512.jpg" alt="9.jpg" src="/ueditor/php/upload/image/20201022/1603344069137512.jpg"/></p><p>Tesla charged through a summertime auto industry sales slump in the U.S.to post stronger-than-expected net earnings for the third quarter.</p><p><br/></p><p> Tesla charged through a summertime auto industry sales slump in the U.S. to post stronger-than-expected net earnings for the third quarter.<br/><br/>The electric car and solar panel maker said Wednesday that it made $331 million, or 27 cents per share, for its fifth-straight profitable quarter.<br/><br/>Excluding special items such as stock-based compensation, Tesla made 76 cents per share, beating Wall Street estimates of 57 cents. Revenue from July through September was $8.77 billion, a record that passed analysts' expectations of $6.3 billion, according to FactSet.</p><p><br/></p><p>But as in previous quarters, the company relied heavily on $397 million it earned from selling electric vehicle credits to other automakers so they can meet government fuel economy and pollution regulations.<br/><br/>The earnings were driven by a 44% increase in global deliveries for the quarter, which came as U.S. auto sales overall fell 9.7% from a year ago due to consumer fears about the economy hit hard by the pandemic.<br/><br/>Shares of the Palo Alto, California, company rose 3% in extended trading Wednesday. Its results were released just after the markets closed. Tesla's shares are worth about five times what they were at the start the year, accounting for a split.<br/><br/>The third-quarter profit was more than double the same period a year ago, when Tesla made $143 million. Its string of profitable quarters reversed years of losses. Through the first nine months of this year, Tesla has made $451 million and appears headed toward its first annual profit.<br/><br/>Jessica Caldwell, executive director of insights for the Edmunds.com auto website, said the company's results and production show it has moved out of rookie territory and may become a mainstream automaker this decade.<br/><br/>But she said the release Tuesday of an all-electric GMC Hummer shows that Tesla is facing competition from multiple auto companies.<br/><br/>"With more EV launches on the horizon, Tesla has a big red target on its back," she said.<br/><br/>On Oct. 2, Tesla reported that it had delivered 139,000 SUVs and sedans from July through September, compared with 97,000 deliveries during the same period a year ago. Analysts said China, where the economy is recovering, was a major source of sales for Tesla.<br/><br/>In a letter to investors Wednesday, Tesla said it still is on target to deliver a half-million vehicles this year, something promised earlier by CEO Elon Musk. The company said hitting the target "has become more difficult" and depends on increases in production of the Model Y small SUV and at the company's plant in China.<br/><br/>Tesla said it should have sufficient cash to fund its future products, which include the Cybertruck pickup and a Semi, as well as its long-term expansion plan. Tesla is adding Model Y production capacity at its Shanghai plant and is building new factories in Germany and near Austin, Texas. Deliveries from the new factories are planned for next year, the company said.<br/><br/>On a conference call, Musk said the company has sent out full self-driving software to a small number of owners for testing on public roads. The system will be released more widely by the end of the year, he said.<br/><br/>Musk said Tesla is starting slowly in order to be safe, gathering data on rare traffic cases that can't be anticipated.<br/><br/>"Weird corner cases, only reality can get you that." he said. "We need to train the system on this corner-case situation, look for examples."<br/><br/>Eighteen months ago, Musk pledged to have a fleet of robotaxis operating by the end of this year. But that apparently won't happen. Musk said Tesla will focus on enabling the robotaxi system but gave no date.<br/><br/>Critics have said that Tesla doesn't have the proper sensors to safely release a full-self-driving vehicle.</p>
22 Oct,2020
