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article imageTesla likely to post 3rd quarter profit as Model 3 takes off

By Karen Graham     Oct 24, 2018 in Business
New York - When Tesla Inc posts third-quarter results on Wednesday, Chief Executive Elon Musk may show off a long-promised quarterly profit, as production of his Model 3 electric sedan takes off.
Tesla could be hinting at big things by moving its earnings report up early. This is a likely sign that Musk will have some good news to report, according to Jalopnik.
But the real question remains: will Tesla be able to maintain any gains seen in the past quarter? Since May, Musk has been pledging to post quarterly profits in the second half of the year after going through growing pains with the production of the Model 3.
This also ends what has been a turbulent time for the electric car company, with U.S. security regulators accusing Musk of securities fraud after he posted misleading Tweets, a move that forced the company and for Musk himself to pay a hefty penalty.
The launch of the 2018 Tesla Model 3 on October 18 was a brilliant move on Tesla's part as U.S. tax breaks for Tesla cars are about to decrease. At the same time as the launch of this year's new Model 3, Tesla also raised the price by $1,000 to $46,000, according to the company’s website.
Shares jump after Citron makes U-turn
Citron Research, a long-time Tesla short-seller firm led by Andrew Left and one of the many suing Musk for alleged fraud over his tweets to take the company private, has changed its tune.
On Tuesday, Citron reversed its position, and In a research note said that Tesla’s Model 3 sedan is a “proven hit." This resulted in Tesla shares jumping 12 percent in trading.
“While the media has been focused on Elon Musk’s eccentric, outlandish and at times offensive behavior, it has failed to notice the legitimate disruption of the auto industry that is currently being dominated by Tesla,” Citron wrote.
According to Reuters, Tesla was able to deliver 55,840 Model 3s in the third quarter, worth more than $3 billion in revenue at $59,000 per car, the average price without any add-ons. But even the healthy quarterly outlook is not enough for all investors to digest.
There is still some unease going forward - meaning the last quarter will now be scrutinized very carefully - mainly to see if Musk's company can give a repeat performance on productivity.
As of October 24, at 11:00 a.m. EDT, Tesla shares were up 0.52 percent, selling at $295.68.
More about Tesla, 3rd quarter, Model 3, shortseller, Profits
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