Thanks to the Model 3, Tesla finally turned a profit last quarter

Share

New Street Research placed a 12-month price target of $530 on Tesla and sees it reaching $1,200 to $2,000 by 2025.

"We can actually be cash flow positive and profitable in all quarters going forward", Tesla's Musk noted.

Tesla CEO Elon Musk once again pointed out that the company now did not intend to raise equity or debt. "I am incredibly excited about what lies ahead".

Following the positive financial results Tesla share prices increased 9.1 percent to $314.86 (£245.58) a share yesterday after previously falling by 2 percent on Wednesday.

Musk settled with the Securities and Exchange Commission over the matter last month, agreeing to pay a $20 million fine and step down as chairman to resolve allegations of fraud.

CEO Elon Musk will sabotage his own goals for the electric vehicle maker if he takes it private, said ARK Invest CEO Cathie Wood, who predicted Tesla stock could reach $4,000 per share.

Ellison also criticized media coverage of Musk, the Tesla and SpaceX CEO, suggesting it is overly harsh and shortsighted. "Tesla has a lot of upside". But even investors who've been among the most vocally bearish about the company have started to change their view as Musk lures away buyers of Camry and 3-Series sedans. "We are thankful to our customers for being such strong advocates of our products and mission", Musk added.

Tesla said that delivery and logistics were the biggest challenges within the third quarter but was able to quickly work around it by making improvements.

The Model 3 itself featured a large reduction in wiring as well, as compared to the Model S and Model X - from 3 kilometers of wiring to 1.5 kilometers - though that situation is a bit different, as the Model 3 is a much smaller vehicle than the Model S or Model X. "Currently, Teslas face a 40-percent import duty in China, creating artificially low demand". Investors have been calling on Ford to detail a promised $11 billion worth of cuts that were promised during the next five years as the company tries to right-size itself to better compete globally.

Tesla is now generating cash, not consuming it and has largely managed to silence critics for the time being.

"In fact, we delivered more cars in this quarter than we did in all of 2016, in a single quarter", continued Musk. The official presentation is now set for March next year. This has been Tesla's plan all along and it seems the company is still on course.

Citron Research, which had bet against Tesla stock for years, wrote in a note posted on its website that the company is destroying the competition.

Musk, 47, made earlier predictions related to the Model 3 that were even more outlandish than the ones he gave past year. It also maintained Tesla is siphoning sales from Toyota and Honda, too. "We can't thank you enough for your support".

Share