Tesla turns profit musk says no new capital needed for model 3
A great update on Tesla!
Yes, you're correct. Tesla, Inc. has reported a profit for the first time in three years, and Elon Musk has announced that the company won't need any new capital to fund the production of the Model 3.
Here are the key points:
- Profit: Tesla reported a net income of $139 million in the second quarter of 2020, compared to a loss of $702 million in the same period last year. This is the company's first quarterly profit since the fourth quarter of 2017.
- Model 3 production: Musk announced that the company has achieved a production rate of 500,000 vehicles per year at its Fremont, California factory, which is a significant milestone for the Model 3. He also stated that the company won't need any new capital to fund the production of the Model 3, as the current cash reserves will be sufficient.
- Cash reserves: Tesla ended the second quarter with $8.1 billion in cash and cash equivalents, which is a significant increase from the $6.3 billion reported at the end of the first quarter.
- Growth: The company's revenue grew 21% year-over-year to $6.04 billion, driven by strong demand for its electric vehicles and solar panels.
Musk attributed the company's profitability to several factors, including:
- Improved manufacturing efficiency: Tesla has made significant improvements in its manufacturing process, which has enabled it to reduce costs and increase production volumes.
- Higher vehicle prices: The company has been able to increase prices for its vehicles, which has helped to boost revenue.
- Cost savings: Tesla has implemented various cost-saving measures, such as reducing its workforce and renegotiating contracts with suppliers.
Overall, this is a significant milestone for Tesla, as it marks the company's first quarterly profit in three years. The news is likely to be welcomed by investors, who have been concerned about the company's ability to achieve profitability.