Tesla Inc. (TSLA) announced strong financial results for the third quarter, mainly helped by a substantial rise in car deliveries. The company also stands firm on its target to deliver 500,000 cars by the end of 2020. However, to achieve this goal, experts believe the company needs to significantly speed up its car sales in the current quarter.
The San Carlos, California-based electric car maker posted a profit of $331 million for the quarter. On an adjusted basis, earnings rose to 76 cents per share, easily beating consensus forecast. Revenue for the quarter climbed to $8.77 billion, representing a surge of 30 percent on year-over-year basis. On the other hand, analysts on average were looking for revenue of $8.36 billion.
Tesla has never announced segregated sales for every region. However, China’s auto industry association’s data shows sales of Tesla Model 3 remained nearly flat between July to September.
Separately, the company reported that Model 3 manufacturing at Shanghai facility has jumped to 250,000 per annum, which is in line with its estimated production rate.
The electric car maker generated a hefty revenue of $397 million from sale of regulatory credits. Revenue from the aforesaid segment helped the company a great deal in achieving better-than-expected quarterly results.
The company said it had the capacity to manufacture and deliver half a million vehicle by the year-end, though mentioned that it is struggling to achieve the target, which according to the company depends on quarterly increase in the production of Model Y.
An analyst asked Tesla whether it could deliver vehicles in the range of 0.84 million to 1 million in 2021, the company’s CEO Elon Musk replied by saying the aforesaid goal is achievable if its factories work at maximum capacity. However, another executive at Tesla said the company would offer outlook on vehicle deliveries for 2021 in the next quarter.