Tesla Reports Second Profitable Quarter Since Going Public

Today Tesla recorded its second profitable quarter since going public in 2010.

Net income of $21.9 million under generally accepted accounting pronciples (GAAP) on $2.3 billion in revenue for the quarter ended Sept 30 was called “one of the best moments ever for Tesla” by company head Elon Musk.

The other profitable quarter was in Q1 2013, and the company is now building cars at a far higher rate with combined Model S and X production totaling 25,185 units last quarter.

This was up 92 percent year over year, and of these, deliveries tallied to 24,821, also its best ever.

“New product launches, increased store efficiency and new store openings drove year-on-year order growth in Q3, while self-driving hardware and other product enhancements position Tesla for additional market share gains,” said the company in a statement. “Our energy storage products are gaining increased market acceptance, firmly establishing Tesla as a leader in energy storage solutions, and surpassing our competitors in the breadth and scope of our offerings across residential, commercial, and utility-scale storage markets.”

Musk during the quarter had issued a rallying call to employees to pitch in and sell as many cars as possible. He had also told them to keep to policy and not discount vehicles – something described as not pervasive, and initially denied, but then conceded.

As the company also looks for a Nov. 17 shareholder vote on the proposed merger with Solar City, it is aiming for another 50,000 units sold, and 90,000 total.

Present production rate, says Tesla, is about 2,000 units per week.

Notable is the company did book a significant portion of its revenues from Zero Emission Vehicle Credits under California Air Resources Board rule.

This amounted to $139 million sold to other automakers needing the credits, up from $39 million the year prior. The company said next quarter it expects green credit sales to decrease.

Also this quarter past, the company released what it calls fully autonomous self-driving hardware. This is not activated, and Tesla says it will be progressively employed in the coming couple years as it’s tested.

Tesla also reported the Gigafactory build out and Model 3 are on track, with deliveries slated second half of 2017.

The Model 3 has created quite the stir, as its proposesd$35,000 and up 215-plus mile range car.

New orders placed now, given a long wait list, would not be filled before the second half of 2018, Tesla has said.

Further details may can seen in at Tesla’s Third Quarter Update.