The Covid-19 pandemic is hitting many economic players hard, but not Tesla. The company reported its third quarter financial results yesterday, and they are very good. Thus, the company achieved earnings before interest and taxes of $ 331 million, this is the fifth consecutive quarter in which it has achieved profitability.
A drop in sales in China?
The American manufacturer specifies that vehicle deliveries have increased quite widely over the past three months. Sales of Model S and X are down but are largely offset by the Model 3 and Y. In detail, Tesla has produced 16,992 Model S and X and delivered 15,725. The production of the Model 3 and Y s 'is soaring: 128,044 for 124,318 deliveries. Together, these sales generate a total of $ 7.6 billion in sales.
Another cause for celebration for the company: its production capacities have improved a lot. It can thus manufacture 500,000 model 3 and Y type vehicles per year in its California factory in Fremont. Productivity is also expected to increase by the end of the year and into 2021.
For the future, the manufacturer believes that it has sufficient liquidity to finance the development of the Roadster and Cybertruck and it sees further by increasing its research and development budget which reached 366 million dollars this quarter.
It’s not all good news from Tesla, however. We came back in particular last August to the disappointing results of the firm in China and in Northern Europe. For the Middle Kingdom, the company would have seen a drop in orders of 24% between June and July. The company has to face newcomers like Nio, who are determined to make life difficult.