Tesla reported a $22 million profit for the third quarter, which happens to be only the second time it has ever been in the black in its history. This also comes at a crucial time for the company as it braces itself to launch the Model 3 that has seen a record number of reservations.
Production of the Model 3 is slated to begin in late 2017. In a letter to shareholders, Tesla announced they are already done with the production line layout. The supplier base has also been finalized while equipment and components that have a long lead time have already been procured, Electrek reported.
"We remain on plan for our timing, volume, vehicle capability, pricing, and margin targets," Tesla wrote in a letter to the shareholders.
It has been twelve quarters that the Palo Alto-based EV maker has been bleeding red though analysts continue to be skeptical if the good showing would continue. Apart from an increase in sales - Tesla sold a record 24,821 units of Model S and Model X - another area that contributed to the healthy rise in profits include the $139 million worth of zero-emission vehicle credits that the automaker sold during the period, the Wall Street Journal stated.
CEO Elon Musk exuded confidence the fourth quarter too will prove significant to Tesla's fortunes and long term goals. Spending though will be higher in the last three months of the year as the company embarks on its ambitious goal of enhancing its factory at Fremont besides also completing construction of its battery plant in Nevada.
Tesla had earlier stated it is looking to expand production capacity to 500,000 units by 2018 from the present 50,000. Revenue went up to $2.3 billion which marks a sharp increase compared to the $936.8 million it registered a year earlier.
The surprise profit will also ensure CEO Musk is in better stead as he proceeds with the merging of Tesla with SolarCity even though the process would require more funds. Going forward, the companies when combined are estimated to require about $12.5 billion by 2018.