Come see Haultail at Orgill Spring Market, February 27-29, 2020; Orange County Convention Center, Orlando, Fla.

Tesla returns to profitability with Shanghai Gigafactory ready to roll

automotive

After announcing record production and delivery of its electric vehicles earlier this month, Tesla has shared its financial results for the third quarter and they too make for some positive reading. The company has returned to profitability on the back of significant cost-cutting, and says its new Gigafactory in Shanghai is ready to start producing EVs for the world’s most populous country.

After announcing record production and delivery of its electric vehicles earlier this month, Tesla has shared its financial results for the third quarter and they too make for some positive reading. The company has returned to profitability on the back of significant cost-cutting, and says its new Gigafactory in Shanghai is ready to start producing EVs for the world’s most populous country.

Tesla is reporting a $143 million net income for the third quarter, quite a turnaround from quarter two and one it attributes to a focus on “cost control” and the lowest operating expenses since it began production of the Model 3. It built almost 79,837 Model 3s for the quarter and delivered 79,600.

Meanwhile, it has added the finishing touches to its Shanghai Gigafactory after breaking ground in January, just 10 months ago. It says it is now "ready for production" and it is already putting together full vehicles at the facility on a trial basis, with a few regulatory items to tick off before starts production proper.

It feels like these are crucial times for Tesla. The Chinese market for EVs dwarfs that of the US, with more than 1.2 million electric vehicles sold there in 2018, compared to 361,000 in the US according to the World Economic Forum. More than half of these are produced by local electric vehicle maker BYD, but Tesla will be eyeing a slice of that pie as the Model 3s start to roll off the assembly line.

“China is by far the largest market for mid-sized premium sedans," reads Tesla’s quarterly report. “With Model 3 priced on par with gasoline powered mid-sized sedans (even before gas savings and other benefits), we believe China could become the biggest market for (the) Model 3.”

 

This article was originally published on newatlas