Tesla reported its cash position improved by about $1.5 million during the quarter even as it repaid $230 million in convertible notes. The electric vehicle maker reported a net profit of $139.5 million for the three months ending December 31, compared with a $311.5 million profit in the third quarter, a time when it benefited from government credits for electric auto purchases.
Tesla said that cost for production decreased by 65 percent in 2018, 20 percent in the fourth quarter compared to the third quarter of 2018 alone. Musk pledged at the time it was a sign of more healthy earnings to come. That means you can probably expect available all-wheel-drive and a maximum range approaching 300 miles per charge for a couple of thousand more than the equivalent Model 3. On Wednesday, the company sought to reassure investors that the manufacturing woes are over.
As for production, the electric automaker said it hopes to achieve a Model 3 production rate of 7,000 vehicles per week by the end of the year.
The company said it expects to be producing about 7,000 vehicles per week at its factory in Fremont, California, by the end of the year.
Earlier this month, Tesla announced layoffs impacting about 7% of its full-time workforce.
This will reduce the costs of producing the Model Y, says Musk - further working towards the EV maker's goal to produce EVs at an affordable price. As we saw with the Model 3 unveiling, it could be some time for the truck to make it to production and into driveways. Last quarter, Tesla reported adjusted earnings per share of $2.90 a share, which took analysts by surprise. In Q4 it was no more than 139.5 million dollars, but that was expected due to Tesla starting deliveries of the less expensive Mid-Range Model 3 in the previous quarter.
Musk on January 18 announced thousands of layoffs and said Tesla was looking for a "tiny profit" in the first quarter - "with great difficulty, effort and some luck".
No timeline for its production was offered, but Musk has previously said it looks like something from "Blade Runner" and will have several first of their kind features.
The disclosure comes amid mixed quarterly results.
Tesla didn't address those critics but said it would continue to develop its own delivery network throughout 2019.
The company said, barring unexpected challenges with Gigafactory Shanghai, it was targeting annualized Model 3 output of more than 500,000 units sometime between the fourth quarter of 2019 and the second quarter of 2020.