{"id":9424,"date":"2016-10-26T17:51:00","date_gmt":"2016-10-27T01:51:00","guid":{"rendered":"http:\/\/associatednews.info\/content\/tesla-surprise-its-a-profit\/"},"modified":"2016-10-26T17:51:00","modified_gmt":"2016-10-27T01:51:00","slug":"tesla-surprise-its-a-profit","status":"publish","type":"post","link":"https:\/\/associatednews.info\/content\/tesla-surprise-its-a-profit\/","title":{"rendered":"Tesla Surprise: It&#039;s A Profit"},"content":{"rendered":"<p><span style=\"font-style:italic;font-size:16px\">By  <a target=\"_blank\" href=\"http:\/\/www.npr.org\/sections\/thetwo-way\/2016\/10\/26\/499525293\/tesla-surprise-its-a-profit?utm_medium=RSS&amp;utm_campaign=business\">Sonari Glinton<\/a><\/span>  <\/p>\n<div class=\"ftpimagefix\" style=\"float:left\"><a target=\"_blank\" rel=\"nofollow\" href=\"http:\/\/www.npr.org\/sections\/thetwo-way\/2016\/10\/26\/499525293\/tesla-surprise-its-a-profit?utm_medium=RSS&amp;utm_campaign=business\"><img decoding=\"async\" width=\"150\" src=\"https:\/\/media.npr.org\/assets\/img\/2016\/10\/26\/gettyimages-588301400_wide-31fe9da03473f71749b7e0c08c07207f5441200d-s1100-c15.jpg\" alt=\"\"><\/a><\/div>\n<div>\n<div><button>Enlarge this image<\/button><\/div>\n<div>\n<div>\n<div>\n<p>The exterior of the new Tesla flagship facility in San Francisco. Tesla attributes its recent profitability in part to the opening of new stores. <strong>Justin Sullivan\/Getty Images<\/strong> <strong>hide caption<\/strong><\/p>\n<\/div>\n<p><strong>toggle caption<\/strong><\/div>\n<p><span>Justin Sullivan\/Getty Images<\/span><\/div>\n<\/div>\n<p>Tesla surprised Wall Street Wednesday by posting a <a target=\"_blank\" rel=\"nofollow\" href=\"http:\/\/files.shareholder.com\/downloads\/ABEA-4CW8X0\/3099703499x0x913801\/F9E5C36A-AFDD-4FF2-A375-ED9B0F912622\/Q3_16_Update_Letter_-_final.pdf\">profit of nearly $22 million<\/a> for the third quarter. It&#8217;s a surprise because it&#8217;s only the second time in the company&#8217;s history that it has posted a quarterly profit.<\/p>\n<p>Tesla attributes its newfound profitability to new product launches, increased store efficiency and new store openings. At the same time the company says its investment in self-driving hardware and other product enhancements position Tesla to gain market share.<\/p>\n<p>&#8220;We&#8217;ve got a chance of being profitable,&#8221; said Tesla&#8217;s CEO Elon Musk about next quarter on the company&#8217;s earnings call. The last time Tesla posted a profit was in the first quarter of 2013.<\/p>\n<p>&#8220;That remains to be seen,&#8221; says Michelle Krebs, senior analyst for Autotrader, about Tesla&#8217;s future profitability. Krebs says the company was able to keep costs in check while focusing on meeting production targets. She adds: &#8220;Finally, Tesla has achieved a milestone that investors long awaited \u2014 a profitable quarter and a surprise one at that.&#8221;<\/p>\n<p>The profitable quarter comes at a particularly good time for Tesla, according to Krebs. Next month, the Tesla board votes on the <a target=\"_blank\" rel=\"nofollow\" href=\"http:\/\/www.npr.org\/sections\/thetwo-way\/2016\/08\/25\/491352290\/tesla-clears-antitrust-hurdle-in-2-6-billion-deal-for-solarcity\">controversial merger with SolarCity Corp<\/a>. Musk is the chairman of Solar City, the maker and installer of solar panels, a company founded by his cousins.<\/p>\n<p>In addition to the merger, Tesla is building its &#8220;gigafactory&#8221; which would be the largest battery factory in the world. The company sees energy storage and production as a key to growth as outlined in a <a target=\"_blank\" rel=\"nofollow\" href=\"http:\/\/ir.tesla.com\/\">letter to investors.<\/a><\/p>\n<blockquote>\n<div>\n<p>&#8220;Our energy storage products are gaining increased market acceptance, firmly establishing Tesla as a leader in energy storage solutions, and surpassing our competitors in the breadth and scope of our offerings across residential, commercial, and utility-scale storage markets. At the same time, we continue to lay the foundation for future growth. Gigafactory construction and Model 3 development both remain on plan to support volume Model 3 production and deliveries in the second half of 2017.&#8221;<\/p>\n<\/div>\n<\/blockquote>\n<blockquote><\/blockquote>\n<p>Tesla says its activity in the battery realm didn&#8217;t keep it from achieving its internal goals. Musk told reporters the company is on track to build the Tesla Model 3, an affordable electric car. The company has set a goal of selling <a target=\"_blank\" rel=\"nofollow\" href=\"http:\/\/www.reuters.com\/article\/us-tesla-results-idUSKCN0XV2JL\">500,000 vehicles by 2018<\/a>. Currently, according to Musk, Tesla is building 2,000 vehicles a week. Tesla said earlier this month that it <a target=\"_blank\" rel=\"nofollow\" href=\"http:\/\/www.techtimes.com\/articles\/180538\/20161003\/tesla-electric-car-deliveries-at-24-500-in-q3-70-percent-increase-from-previous-quarter.htm\">delivered 24,500 vehicles<\/a>, a 70 percent increase from the same time last year. Tim Higgins of the Wall Street Journal <a target=\"_blank\" rel=\"nofollow\" href=\"http:\/\/www.wsj.com\/articles\/tesla-posts-second-profitable-quarter-ever-1477513454\">reports on CEO&#8217;s plan for expansion.<\/a><\/p>\n<blockquote>\n<div>\n<p>&#8220;Tesla needs about $2.5 billion through the end of 2017 for the Model 3 roll out and the completion of a huge battery factory in Nevada, according to Brian Johnson, an automotive analyst at <a target=\"_blank\" rel=\"nofollow\" href=\"http:\/\/quotes.wsj.com\/BCS\">Barclays<\/a>.<\/p>\n<p>&#8220;The improved results also could help Mr. Musk make the case that <a target=\"_blank\" rel=\"nofollow\" href=\"http:\/\/www.wsj.com\/articles\/elon-musk-faces-cash-squeeze-at-tesla-solarcity-1472687133\">he can handle merging Tesla with<\/a> <a target=\"_blank\" rel=\"nofollow\" href=\"http:\/\/quotes.wsj.com\/SCTY\">SolarCity<\/a> Corp., which could require additional cash. The combined companies ultimately may need to raise $12.5 billion for spending through 2018, according to <a target=\"_blank\" rel=\"nofollow\" href=\"http:\/\/quotes.wsj.com\/OPY\">Oppenheimer &amp; Co.<\/a> Tesla and SolarCity shareholders are scheduled to vote on a merger Nov. 17.&#8221;<\/p>\n<\/div>\n<\/blockquote>\n<p>&#8220;Tesla badly needed this positive outcome after 13 quarters of unprofitable results to reassure investors,&#8221; says Rebecca Lindland of Kelley Blue Book. Lindland says keeping the Model 3 on schedule could be a precursor to even better days ahead. &#8220;If they do not,&#8221; she warns, &#8220;then this could be that sunny day that often precedes a perfect storm.&#8221;<\/p>\n<p><strong><a target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/blockads.fivefilters.org\/\">Let&#8217;s block ads!<\/a><\/strong> <a target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/github.com\/fivefilters\/block-ads\/wiki\/There-are-no-acceptable-ads\">(Why?)<\/a><\/p>\n<p>Source:: <a href=\"http:\/\/www.npr.org\/sections\/thetwo-way\/2016\/10\/26\/499525293\/tesla-surprise-its-a-profit?utm_medium=RSS&amp;utm_campaign=business\" target=\"_blank\" title=\"Tesla Surprise: It&#039;s A Profit\" rel=\"nofollow\">http:\/\/www.npr.org\/sections\/thetwo-way\/2016\/10\/26\/499525293\/tesla-surprise-its-a-profit?utm_medium=RSS&amp;utm_campaign=business<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<div class=\"ftpimagefix\" style=\"float:left\"><a target=\"_blank\" rel=\"nofollow\" href=\"http:\/\/www.npr.org\/sections\/thetwo-way\/2016\/10\/26\/499525293\/tesla-surprise-its-a-profit?utm_medium=RSS&amp;utm_campaign=business\"><img decoding=\"async\" width=\"150\" src=\"https:\/\/media.npr.org\/assets\/img\/2016\/10\/26\/gettyimages-588301400_wide-31fe9da03473f71749b7e0c08c07207f5441200d-s1100-c15.jpg\" alt=\"\"><\/a><\/div>\n<div>\n<div><button>Enlarge this image<\/button><\/div>\n<div>\n<div>\n<div>\n<p>The exterior of the new Tesla flagship facility in San Francisco. Tesla attributes its recent profitability in part to the opening of new stores. <strong>Justin Sullivan\/Getty Images<\/strong> <strong>hide caption<\/strong><\/p>\n<\/div>\n<p><strong>toggle caption<\/strong><\/div>\n<p><span>Justin Sullivan\/Getty Images<\/span><\/div>\n<\/div>\n<p>Tesla surprised Wall Street Wednesday by posting a <a target=\"_blank\" rel=\"nofollow\" href=\"http:\/\/files.shareholder.com\/downloads\/ABEA-4CW8X0\/3099703499x0x913801\/F9E5C36A-AFDD-4FF2-A375-ED9B0F912622\/Q3_16_Update_Letter_-_final.pdf\">profit of nearly $22 million<\/a> for the third quarter. It&#8217;s a surprise because it&#8217;s only the second time in the company&#8217;s history that it has posted a quarterly profit.<\/p>\n<p>Tesla attributes its newfound profitability to new product launches, increased store efficiency and new store openings. At the same time the company says its investment in self-driving hardware and other product enhancements position Tesla to gain market share.<\/p>\n<p>&#8220;We&#8217;ve got a chance of being profitable,&#8221; said Tesla&#8217;s CEO Elon Musk about next quarter on the company&#8217;s earnings call. The last time Tesla posted a profit was in the first quarter of 2013.<\/p>\n<p>&#8220;That remains to be seen,&#8221; says Michelle Krebs, senior analyst for Autotrader, about Tesla&#8217;s future profitability. Krebs says the company was able to keep costs in check while focusing on meeting production targets. She adds: &#8220;Finally, Tesla has achieved a milestone that investors long awaited \u2014 a profitable quarter and a surprise one at that.&#8221;<\/p>\n<p>The profitable quarter comes at a particularly good time for Tesla, according to Krebs. Next month, the Tesla board votes on the <a target=\"_blank\" rel=\"nofollow\" href=\"http:\/\/www.npr.org\/sections\/thetwo-way\/2016\/08\/25\/491352290\/tesla-clears-antitrust-hurdle-in-2-6-billion-deal-for-solarcity\">controversial merger with SolarCity Corp<\/a>. Musk is the chairman of Solar City, the maker and installer of solar panels, a company founded by his cousins.<\/p>\n<p>In addition to the merger, Tesla is building its &#8220;gigafactory&#8221; which would be the largest battery factory in the world. The company sees energy storage and production as a key to growth as outlined in a <a target=\"_blank\" rel=\"nofollow\" href=\"http:\/\/ir.tesla.com\/\">letter to investors.<\/a><\/p>\n<blockquote>\n<div>\n<p>&#8220;Our energy storage products are gaining increased market acceptance, firmly establishing Tesla as a leader in energy storage solutions, and surpassing our competitors in the breadth and scope of our offerings across residential, commercial, and utility-scale storage markets. At the same time, we continue to lay the foundation for future growth. Gigafactory construction and Model 3 development both remain on plan to support volume Model 3 production and deliveries in the second half of 2017.&#8221;<\/p>\n<\/div>\n<\/blockquote>\n<blockquote><\/blockquote>\n<p>Tesla says its activity in the battery realm didn&#8217;t keep it from achieving its internal goals. Musk told reporters the company is on track to build the Tesla Model 3, an affordable electric car. The company has set a goal of selling <a target=\"_blank\" rel=\"nofollow\" href=\"http:\/\/www.reuters.com\/article\/us-tesla-results-idUSKCN0XV2JL\">500,000 vehicles by 2018<\/a>. Currently, according to Musk, Tesla is building 2,000 vehicles a week. Tesla said earlier this month that it <a target=\"_blank\" rel=\"nofollow\" href=\"http:\/\/www.techtimes.com\/articles\/180538\/20161003\/tesla-electric-car-deliveries-at-24-500-in-q3-70-percent-increase-from-previous-quarter.htm\">delivered 24,500 vehicles<\/a>, a 70 percent increase from the same time last year. Tim Higgins of the Wall Street Journal <a target=\"_blank\" rel=\"nofollow\" href=\"http:\/\/www.wsj.com\/articles\/tesla-posts-second-profitable-quarter-ever-1477513454\">reports on CEO&#8217;s plan for expansion.<\/a><\/p>\n<blockquote>\n<div>\n<p>&#8220;Tesla needs about $2.5 billion through the end of 2017 for the Model 3 roll out and the completion of a huge battery factory in Nevada, according to Brian Johnson, an automotive analyst at <a target=\"_blank\" rel=\"nofollow\" href=\"http:\/\/quotes.wsj.com\/BCS\">Barclays<\/a>.<\/p>\n<p>&#8220;The improved results also could help Mr. Musk make the case that <a target=\"_blank\" rel=\"nofollow\" href=\"http:\/\/www.wsj.com\/articles\/elon-musk-faces-cash-squeeze-at-tesla-solarcity-1472687133\">he can handle merging Tesla with<\/a> <a target=\"_blank\" rel=\"nofollow\" href=\"http:\/\/quotes.wsj.com\/SCTY\">SolarCity<\/a> Corp., which could require additional cash. The combined companies ultimately may need to raise $12.5 billion for spending through 2018, according to <a target=\"_blank\" rel=\"nofollow\" href=\"http:\/\/quotes.wsj.com\/OPY\">Oppenheimer &amp; Co.<\/a> Tesla and SolarCity shareholders are scheduled to vote on a merger Nov. 17.&#8221;<\/p>\n<\/div>\n<\/blockquote>\n<p>&#8220;Tesla badly needed this positive outcome after 13 quarters of unprofitable results to reassure investors,&#8221; says Rebecca Lindland of Kelley Blue Book. Lindland says keeping the Model 3 on schedule could be a precursor to even better days ahead. &#8220;If they do not,&#8221; she warns, &#8220;then this could be that sunny day that often precedes a perfect storm.&#8221;<\/p>\n<p><strong><a target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/blockads.fivefilters.org\/\">Let&#8217;s block ads!<\/a><\/strong> <a target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/github.com\/fivefilters\/block-ads\/wiki\/There-are-no-acceptable-ads\">(Why?)<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[],"class_list":["post-9424","post","type-post","status-publish","format-standard","hentry","category-business-2"],"_links":{"self":[{"href":"https:\/\/associatednews.info\/content\/wp-json\/wp\/v2\/posts\/9424","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/associatednews.info\/content\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/associatednews.info\/content\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/associatednews.info\/content\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/associatednews.info\/content\/wp-json\/wp\/v2\/comments?post=9424"}],"version-history":[{"count":0,"href":"https:\/\/associatednews.info\/content\/wp-json\/wp\/v2\/posts\/9424\/revisions"}],"wp:attachment":[{"href":"https:\/\/associatednews.info\/content\/wp-json\/wp\/v2\/media?parent=9424"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/associatednews.info\/content\/wp-json\/wp\/v2\/categories?post=9424"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/associatednews.info\/content\/wp-json\/wp\/v2\/tags?post=9424"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}