Author: Stephen Johnson / Source: Big Think
- Tesla issued its Q3 earnings report earlier than expected this year.
- The report shows Tesla earned $6.82 billion in revenue vs. an expected $6.33 billion.
- Tesla’s Q3 success is largely due to booming sales of the Model 3, the company’s cheapest and newest car.
Tesla significantly outperformed Wall Street’s expectations in the third quarter of 2018, according to an earnings report released by the company on Wednesday. Indeed, the report stated that it had been a “truly historic” quarter for Tesla, thanks in large part to the success of the Model 3, the automaker’s newest and cheapest car.
“It is clear that customers are trading up their relatively cheaper vehicles to buy a Model 3 even though there is not yet a leasing option and the Q3 starting price of a Model 3 was $49,000,” a spokesperson told reporters on a phone call. “This leads us to believe that the total market potential for Model 3 is larger than just the premium sedan market.”
The report showed:
- Adjusted earnings: $2.90 a share vs. an expected loss of 19 cents per share, based on analysts’ estimates
- Revenue: $6.82 billion vs. an expected $6.33 billion
- An average production rate of about 4,300 Model 3s per week
- Free cash flow of $881M supported by operating cash…
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