Tesla's Musk Says Company Focusing on What's Next

Tesla finally posts a profit

Why almost everyone was wrong about Tesla's cash flow situation

For the third quarter, Tesla reported revenue of United States dollars 6.82 Billion, increasing 128.9% year over year and topping estimates of USD 6.33 Billion.

Wall Street analysts have been saying for months that the company would need to raise more money to sustain a ramp up of production of the crucial Model 3 sedan, but several said on Thursday that might no longer be necessary.

A Tesla spokesperson confirmed the company had received a "voluntary request" earlier this year from the US Department of Justice about its "public guidance for the Model 3 ramp" and cooperated with the request.

But the major difference between the three service is that Musk's platform, dubbed the Tesla Network, would be entirely made up of autonomous cars.

Ellison reportedly acknowledged some of Tesla's manufacturing difficulties but pinned them on Panasonic, which makes battery cells for Tesla's vehicles.

The automaker has previously warned that production capacity in its Fremont factory is essentially maxed out, requiring a temporary structure to support the current volume of Model 3 output.

Musk later abandoned his plan and the Securities and Exchange Commission subsequently filed a lawsuit alleging that he had misled investors because he was never close to lining up the estimated $25 billion to $50 billion that it would have taken to pull of the deal he envisioned.

The Model Y is due to be the next model that the carmaker intends to add to its stable of EVs, completing the S3XY series that began with the Model S, and is continued by the Model 3 and Model X.

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Shipment of vehicles to China will begin late in the first quarter or early in the second quarter, which is sooner than Musk had predicted earlier, will help to offset any potential losses for the time being and he expects the any drop to stabilize at about the 5,000-unit mark for US buyers.

Tesla ended September with $2.9 billion in cash, up from $2.2 billion in June.

"Q3 2018 was a truly historic quarter for Tesla", the company's letter to shareholders reads in part.

Company looking to expand Model 3 production. We are enormously proud of the efforts of the whole company in making it through this hard ramp and getting us to volume production. He remains CEO but is stepping down as chairman of the board and bringing on two new board members.

The usually freewheeling Musk was unusually restrained through most of the call with analysts, although he occasional broke into some braggadocio.

While the third-quarter results were definitely "impressive", and spurred at least one upgrade to outperform at Wolfe Research, most analysts questioned whether the profit and robust cash flow were sustainable and can be repeated next quarter.

Musk, 47, made earlier predictions related to the Model 3 that were even more outlandish than the ones he gave a year ago. The Company reported an adjusted earnings per share of Dollars 2.90, increasing from a loss of USD 2.92 per share previous year and smashing analysts' estimates of an earnings per share loss of 19 cents.

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