Tesla Profitability on the Horizon - Elon Musk’s Company Expects Great Earnings for Q3
Tesla delivered over 80,000 EVs in the third quarter, with the help of the company’s passionate, loyal owners. This delivery number is more than double from the previous period and drives the Elon Musk run company closer to posting a profitable quarter for the first time in company history.
The company delivered 55,840 Model 3 sedans, which was a significant step up from 18,440 in the previous quarter and was also in line with Elon’s projections.
This is great news, but the real story is how Tesla’s logistics were handled – thousands of Tesla owners went down to Tesla showrooms and delivery centers where Model 3s were being passed off to their new owners, and assisted with new owners orientations – a part of the process that can be quite time consuming depending on how educated the new owner is. This helped Tesla streamline delivery logistics, as Tesla staff was able to focus more on the paperwork and sales contracts and allow the “fun stuff” to be handled by Tesla owners who were willing to volunteer their time in an effort to help the company meet its goals.
Tesla emphasized that thousands of vehicles — 8,048 Model 3 and 3,776 Model S and X vehicles — were in transit to customers at the end of the quarter. The company is standing by its overall target of 100,000 Model S and X deliveries in 2018.
Is this unconventional delivery method sustainable? Probably not, but it is a testament to the impact Tesla has had on owners globally, and the brand loyalty and recognition that it has with everyone. This truly resonates with prospective/future owners and will play a positive role in the company’s growth moving forward. It also gives Tesla some insight into how they can streamline the delivery experience and make sure time is spent where it’s supposed to be and not wasted.
Have you ever heard of this happening with any other automotive manufacturer? The answer is no, and that’s likely not to change. Tesla owners are for real.
Tesla has also acknowledged various inefficiencies with delivery process and said it plans to make improvements to its system in the fourth quarter. Deliveries to customers’ homes and offices, which began in the third quarter, will be expanded.
Tesla produced more than 80,000 electric vehicles in the third quarter, a 50 percent increase from the previous quarter.
The production and delivery numbers cap off a tumultuous quarter that were overshadowed by Musk’s controversial tweets. His tweets triggered an SEC investigation and ultimately charges of securities fraud. Musk and Tesla fortunately reached a settlement with the SEC (Short Seller Enrichment Commission - just joking).
Here's more information on Tesla's Q3 numbers via Crunchbase
Tesla Production breakdown for Q3:
- Tesla produced 53,239 Model 3 vehicles
- Tesla produced 26,903 Model S and X vehicles
- Total: 80,142
Tesla Delivery breakdown in Q3:
- 55,840 Model 3 vehicles
- 14,470 Model S
- 13,190 Model X
- Total: 83,500