Between June and September 201
Well we have that answer. On Wednesday afternoon, Tesla announced it made a profit of $ 143 million during the third quarter of 2019. The other surplus figures from the third quarter of 2019 are that at the end of September, the company had $ 5.3 billion in cash and cash equivalents and $ 371 million in cash .
In comparison, Tesla lost $ 408 million in the second quarter of 2019, which followed even heavier losses in the first quarter of 2019. In a presentation to investors ahead of a conference call this afternoon, Tesla stated that this new-found profitability "was possible at a considerable cost from our business. "Despite average sales prices falling (as consumers buy many more, cheaper Model 3 variants and many fewer Model 3 Performance or Models S or X), Tesla says the gross margin for car is now 22.8 %. It is higher than it was previously in 2019.
Shanghai Gigafactory is ready
In addition, Tesla has kept its promise to make its Chinese operation ready for production before the turn of the year. Tesla says it was built for 65% less per capacity than the "US Model 3 production system." Initially, chief honcho Elon Musk had spied an "alien mine" that would move faster than they could see, but ended up with "production hell" instead.
Tesla states that the Shanghai Gigafactory is already producing test vehicles and that it is in the process of obtaining the various necessary licenses and approvals from the Chinese government before it can begin producing Model 3's mass .
Tesla's plant in Fremont, California, is currently receiving its Model Y production equipment. Tesla says it has learned from its experience in Shanghai and that investment spending should be 50% lower per Model Y than was the case for US-built Model 3s. Tesla has increased its capital expenditure for the third quarter (from $ 250 million to $ 385 million), but the levels are still far below where they were in the third quarter of 2018. (The Chinese Gigafactory was financed with Chinese debt.)
has often played a significant role when Tesla served. As we recently reported, Fiat Chrysler Automobiles and Tesla have entered into a partnership that will allow the FCA to count Tesla's EVs as their own for next year's penal code for EU carbon emissions. However, we must wait for the release of Tesla's 10-Q document in the coming weeks to determine what FCA's contribution has been to this set of results.
Similarly, although Tesla states that it has acknowledged some of the revenue related to Smart Summon, it does not elaborate exactly how much this or "other disposable" items actually contributed to the bottom line. It also has to wait for 10-Q.