On Wednesday BBC News announced through their online news outlet that Tesla: the well-known automobile
The BBC noted that in the three months to the year-end on 31st December 2018, Tesla recorded a profit of $139.5m (£106.4m). These numbers show Tesla has successfully evaded recording a loss for the second quarter in a row. This doesn’t come as an easy feat considering the rate at which closures have been made and record losses are being recorded by other major companies.
It is widely believed that the profit
Earlier this year, on the 7th of January, it was reported in Arstechnica that Tesla opened its first factory outside of the United States. Despite this, the electric car-maker also made a reduction in their number of employers. Although a year that began with mixed feelings, CEO Elon Musk has steered the boat in the right direction. The BBC noted that recent profit recorded was credited to the strong demand for the Tesla Model 3, which features new manufacturing improvements. Furthermore, the recent cost cuts were also recognized to have played a big role in the company’s turnaround.
Tesla forecasts even stronger growth, with the rate at which the Model 3 is being requested in Europe and China, when sales started.
In a recent interview Technology entrepreneur and engineer, Elon Musk identified the sole problem being faced by this ever-increasing demand for the Tesla Model 3. That being that deliveries may slow in upcoming months. This he attributed to the time it takes to ship vehicles to other countries from production sites.
“That stands to be the company’s biggest challenge,” Elon Musk, CEO of Tesla Motors said. “The problem we face has nothing to do with demand rather, it’s our supply and how we respond to this ever-increasing demand, how fast we can make delivers to where these cars are requested.”
The challenges seem unsurmountable coming from China; one of the major markets for electric vehicles. Recently, China has been busy with high-stakes trade talks with the US. Tesla could be looking at higher tariffs Should the two countries fail to reach a deal.
In fact, Elon Musk seems to be in the dark as to how the deal will turn out. In a recent interview where he was responding to these claims “We don’t know where the deal will lead to… so it’s very important to get these cars to their destinations as soon as possible”Mr Elon Musk said.
In a bid to meet up with demands on the uprising, Tesla said it is looking at delivering 360,000 to 400,000 vehicles in 2019. These figures show a growth of around 45% to 65% compared to that recorded in 2018. Elon Musk
Mr Elon Musk said he has strong faith in the move as he said it was “representative of them wanting to make the market as open as possible”
Mr Elon Musk also used the medium to announce that the firm’s chief financial officer Deepak Ahuja would be retiring. However, the retirement doesn’t send him out of Tesla as he would continue to serve as a “senior adviser” for many years to come. It’s no doubt that Tesla was under intense pressure last year, as it has to invest a lot in a short period of time basically to improve production. This was also in a bid to deliver its latest car to the rightful customers.
However, in a comforting statement, the firm described the manufacturing issues the companies have now as “stabilized”.
Numbers don’t lie, as we see in those recorded in the most recent quarter. Tesla recorded about $7.2bn in revenues and this was solely from car sales. This figures recorded surpasses that of the previous year as it was double the same recorded at this exact period in 2017. Another similarity between the two production years is seen in the operating expenses. Operating expenses for 2018 was reduced by 7% from the quarter before, to about $1bn as compared to the one recorded in 2017. The decrease observed in the operating expenses follows the announcement of thousands of job cuts earlier on in the year, including about 3,000 that was announced in January noted CNBC.