Tesla records 2nd profit as public company
Skip to main content
Sister Publication Links
  • Automotive News Canada
  • Automotive News Europe
  • Automotive News China
  • Automobilwoche
AN-LOGO-BLUE
Subscribe
  • Subscribe
  • Account
  • login
  • HOME
  • NEWS
    • Dealers
    • Automakers & Suppliers
    • News by Brand
    • Cars & Concepts
    • Final Assembly
    • China
    • Shift
    • Mobility Report
    • Special Reports
    • Digital Edition Archive
    • This Week's Issue
    • Still no auto show, so Detroit tries car crawl
      Diess chose VW over CEO job at Tesla
      The special-edition GT-R Nismo goes on sale in North America this fall. It does not come with a Happy Meal.
      Nissan's 600-hp hamburger helper
      Prince Philip died April 9.
      Philip's custom Land Rover hearse gets called into duty
    • Shanghai Tesla protest
      Tesla apologizes as anxiety grows after driver protest
      Jaguar at Shanghai show.jpg
      Jaguar Land Rover expects luxury sales to grow in 2021
      Hyundai logo
      Hyundai Group to launch EVs every year starting in 2022
      The Ford Mustang Mach-E assembled at Ford's joint venture with Changan Automobile Co.
      Ford starts preorders for locally built Mustang Mach-E
    • Udelv CEO offers a historical perspective on high-tech goods delivery
      Q&A with BrightDrop CEO Travis Katz
      Automakers optimize manufacturing, customize products through digitization
      3D-printing a Porsche: Making concepts matter
    • Volvo Didi test car 2.jpg
      Volvo will provide XC90s for Didi's self-driving test fleet
      Hyundai logo
      Hyundai Motor Group names chief for new mobility division
      Tesla Autopilot web.jpg
      Tesla, ex-engineer settle lawsuit over Autopilot source code
      Cruise self-driving vehicle
      Cruise raises $2.75 billion from Walmart, others
    • Elon Musk interview
      Tesla’s Model Y, on sale since March, is a showcase of EV technologies competitors will benchmark.
      Technologies of Electrification
      Cadillac’s Lyriq EV will be unveiled Aug. 6.
      Future Product Pipeline
      A CALL TO ACTION
    • Lithia goes big on Michigan market
      Mercedes bypasses crossover route, enters EVs sedan-first
      Mercedes' new U.S chief: EVs won't kill profits
      Get even more Automotive News with our new app
    • Access F&I
    • Fixed Ops Journal
    • Marketing
    • Used Cars
    • Retail Technology
    • Sales
    • Best Practices
    • Dealership Buy/Sell
    • NADA
    • NADA Show
    • Automakers
    • Manufacturing
    • Suppliers
    • Regulations & Safety
    • Executives
    • Talk From The Top
    • Leading Women Network
    • Guide to Economic Development
    • PACE Awards
    • Management Briefing Seminars
    • World Congress
    • Aston Martin
    • BMW
      • Mini
      • Rolls-Royce
    • Daimler
      • Mercedes Benz
      • Smart
    • Ford
      • Lincoln
    • General Motors
      • Buick
      • Cadillac
      • Chevrolet
      • GMC
    • Honda
      • Acura
    • Hyundai
      • Genesis
      • Kia
    • Mazda
    • McLaren
    • Mitsubishi
    • Nissan
      • Infiniti
    • Stellantis
      • Alfa Romeo
      • Citroen
      • Chrysler
      • Dodge
      • Ferrari
      • Fiat
      • Jeep
      • Lancia
      • Maserati
      • Opel
      • Peugeot
      • Ram
      • Vauxhall
    • Renault
    • Subaru
    • Suzuki
    • Tata
      • Jaguar
      • Land Rover
    • Tesla
    • Toyota
      • Lexus
    • Volkswagen
      • Audi
      • Bentley
      • Bugatti
      • Lamborghini
      • Porsche
      • Seat
      • Skoda
    • Volvo
    • (Discontinued Brands)
    • Virtual reveals (Sponsored)
      • MITSUBISHI: 2022 Outlander
      • NISSAN: 2022 Pathfinder and 2022 Frontier
      • GENESIS: 2021 GV80
      • KIA: 2021 K5
      • LEXUS: 2021 IS
      • NISSAN: 2021 Rogue
      • TOYOTA: 2021 Venza and 2021 Sienna
    • Auto Shows
    • Future Product Pipeline
    • Photo Galleries
    • Car Cutaways
    • Design
  • OPINION
    • Blogs
    • Cartoons
    • Keith Crain
    • Automotive Views with Jason Stein
    • Columnists
    • China Commentary
    • Editorials
    • Letters to the Editor
    • Send us a Letter
    • used car blog art 2010 Mini Cooper
      Used-car market sizzling for sellers, not so great for buyers
      It's time to rethink EV range
      Mercedes EQS mirrors web.jpg
      For the EQS, Mercedes likes what it sees in the mirror
      Mach-E
      For Ford, 3rd-party charging network must improve to reap Mustang Mach-E potential
    • EVs Arrived EVentually
      EVs Came, EVentually
      In case of supply chain woes, break glass
      Quick! The Biden phone
      VW's Joke Is On You
      Joke Is On You
      view gallery
      4 photos
      Leo Michael Cartoons - Q2 2021
    • Shifting gears away from the stick shift
      SEMA still a wonderful circus
      Penske still has plenty of races to win
      Ford's turn in the hot seat
    • April 20, 2021 | The future of working may be hybrid
      April 13, 2021 | GM shows it’s serious about electric
      April 6, 2021 | For Volkswagen, authenticity is the only path forward
      March 30, 2021 | Tesla “changes” car industry
    • Supreme Court must preserve system that has delivered huge reductions in emissions
      Dave Versical
      For Manheim head, fighting anti-Asian hate is personal
      Tom Roberts
      Will the auto industry rethink supply chain disruption now?
      GM lost a lot on EV1, but project pays dividends
    • Why Xiaomi holds promise of becoming formidable EV player
      Geely’s new EV push is decidedly new age
      Charging poles installed outside a Tesla store in downtown Shanghai.
      Unreliable public EV charging sites prompt automakers to take wheel
      VW Group's playbook to dominate EV market
    • Despite demise, EV1 was a risk worth taking
      A step in right direction for Nissan dealers
      ‘Voltswagen' April Fools' gag far from funny
      Less is more in lineups as well as on lots
    • Lunn was behind vehicles with impact
      ‘Voltswagen' was clever and fun
      With EVs, bias for traditional carmakers
      There goes VW recycling again
  • DATA CENTER
  • VIDEO
    • AutoNews Now
    • First Shift
    • Special Video Reports
    • Weekend Drive
    • AutoNews Now: Ford extends downtime at F-150 plant, other N.A. factories
      AutoNews Now: Stellantis managers indicted on emissions fraud
      AutoNews Now: Toyota's Carter says EV portfolio will be varied
      AutoNews Now: Ram output said to be slowing as COVID cases surge
    • First Shift: Governors urge Biden to end gasoline-powered vehicle sales by 2035
      First Shift: Tesla's Musk: Autopilot not in use during deadly crash
      First Shift: GM: Market could alter 2035 EV goal
      First Shift: Indicted ex-Nissan exec Kelly 'blameless,' U.S. senator says
    • The life, death and legacy of GM's groundbreaking EV1
      Face-to-face with the General Motors EV1
      Toyota store's in-house training program retains more techs
      Virtual sales manager Jay Barger
      'Glued to a phone': Acura store's virtual sales boss lifts deliveries, efficiency
    • Why the pickup is the auto industry's 'battleground'
      Carlos Ghosn's quest to restore his reputation
      Why Ford must execute to avoid 'deep trouble'
      Why Honda is 'locked and loaded' for 2020
  • EVENTS & AWARDS
    • Events
    • Awards
    • Congress Conversations
    • Retail Forum: NADA
    • Canada Congress
    • Europe Congress Conversations
    • Fixed Ops Journal Forum
    • Shift: Mobility at a Crossroads
    • 100 Leading Women
    • 40 Under 40 Retail
    • All-Stars
    • Best Dealerships To Work For
      • Register for the 2021 Best Dealership To Work For
    • PACE Program
    • Rising Stars
    • Europe Rising Stars
  • JOBS
  • AN Solutions
  • +MORE
    • Leading Women Network
    • Podcasts
    • Webinars
    • In the Driver's Seat
    • Publishing Partners
    • Classifieds
    • Companies on the Move
    • People on the Move
    • Newsletters
    • Contact Us
    • Media Kit
    • RSS Feeds
    • Shift: A Podcast About Mobility
    • Special Reports Podcasts
    • Daily Drive Podcasts
    • AAM
    • Cars.com
    • DealerPolicy
    • Gentex
    • IHS Markit
    • Remember Group
    • Reputation.com
    • Ricardo: Dave Shemmans
    • Ricardo: Marques McCammon
    • Allstate: Want more from your F&I?
    • Ally: Navigating the future of automotive retailing
    • Amazon Web Services: Any place, any time, any channel
    • Amazon Web Services: The power of the cloud
    • Amazon Web Services: Universal translator: Harnessing sensor data to build better automotive software
    • Capital One Auto: Dealerships remain vital to an increasingly digital car shopping journey
    • DealerSocket: 5 steps to modernizing the buyer's journey
    • Epic Games: Build stunning, real-time car configurators with Unreal Engine
    • Epic Games: Real-time tech is the next frontier of automotive
    • Epic Games: Transforming the auto industry with digital assets
    • FTI Consulting: Crisis as a catalyst for change
    • Google: 5 trends shaping the auto industry's approach to a new normal
    • Google: Google's dealer guidebook helps dealers navigate today's digital landscape
    • IHS Markit: Automotive loyalty in the wake of the COVID-19 recession
    • IHS Markit: COVID-19: The future mobility delusion
    • Level5: 2020 Automotive E-Commerce Report
    • Motormindz: Toward hyperconnectivity: 5 ways to position your business to profit from connected car
    • Naked Lime: Bring social reputation together as part of big-picture marketing
    • Ally: Do It Right
MENU
Breadcrumb
  1. Home
  2. Mobility Report
October 26, 2016 01:00 AM

Tesla records 2nd profit as public company

Company posts $22 million in Q3 net income, generates $2.3 billion in revenue

Katie Burke
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    BLOOMBERG
    Tesla said it delivered 24,500 cars in the third quarter.

    For just the second time in its history as a public company, Tesla Motors Inc. reported net income, making $22 million net for the third quarter.

    The company on Wednesday attributed the gains -- which broke a 13-quarter streak of losses -- to record production, deliveries and revenue. This month, Tesla said it delivered 24,500 cars in the third quarter, putting it on track to hit its goal of 50,000 vehicle sales for the second half of 2016.

    But a significant part of Tesla’s third quarter revenue came from pollution credits it sold to other automakers. In the third quarter, Tesla booked $139 million in those credits, up from $39 million a year ago. The company said it expects revenue from those credits to decline in the fourth quarter. 

    “New product launches, increased store efficiency and new store openings drove year-on-year order growth,” Tesla said in a statement. “Self-driving hardware and other product enhancements position Tesla for additional market share gains.”

    Quarterly revenue more than doubled compared with the third quarter of 2015, coming in at $2.3 billion compared with $937 million.

    Tesla shares rose 4.5 percent in Thursday morning trading, but closed the day up 0.9 percent to $204.01.

    Zero emission credits

    Tesla’s boost from Zero Emission Vehicle Credit transfers will likely be short-lived.

    ZEV revenue is expected to drop in the fourth quarter as automakers sell more electric vehicles so they won’t need to buy as many from Tesla. A member of the California Air Resources Board told Bloomberg in August that the agency could limit the number of credits individual automakers receive when it reevaluates the program before the end of the year.

    On a call with investors, Tesla CEO Elon Musk said the company can maintain its net income for the fourth quarter without the credits because the automaker is increasing vehicle profit margins and has increased production of the Model S P100D -- which starts at $134,500. The automaker is also planning to cut capital costs for 2017.

    “Expect gross margins to increase, that’s a huge factor,” Musk said. “We’re using very few prototype parts and have had a bunch of design improvements and design cut-downs.”

    Some investors had worried that Tesla would not post a profit since it is gearing up for Model 3 production -- an expensive undertaking. The Model 3 has been well-received and has 373,000 preorders. Tesla said the plan to start selling the Model 3 in the second half of 2017 is on track.

    Battery plant on schedule

    The company said the construction of its battery gigafactory in Nevada is also on schedule.

    This month, Musk said all new vehicles will be equipped with self-driving hardware, though software updates won’t be released for the next two to three months.

    Also mentioned on the call:

    • Barring unforeseen events, Musk expects that Tesla will not need to raise additional capital to execute Model 3 production and deliveries.
    • In the first half of the year, Tesla ran into production issues that “took a year out of my life from camping out in the Tesla factory,” Musk said. Those problems have been addressed and the company is hitting its goal of producing 2,000 vehicles a week.
    • Tesla has streamlined its capital expenditures, averaging $250 million a quarter in 2016, according to CFO Jason Wheeler. That number is expected to decrease further in 2017.

    RECOMMENDED FOR YOU
    Volvo will provide XC90s for Didi's self-driving test fleet
    Related Articles
    Musk says Tesla car-share network is 'the people vs. Uber'
    Letter
    to the
    Editor

     

     

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    Volvo will provide XC90s for Didi's self-driving test fleet
    Volvo will provide XC90s for Didi's self-driving test fleet
    Hyundai Motor Group names chief for new mobility division
    Hyundai Motor Group names chief for new mobility division
    Tesla, ex-engineer settle lawsuit over Autopilot source code
    Tesla, ex-engineer settle lawsuit over Autopilot source code
    Dealerships remain vital to an increasingly digital car shopping journey
    Sponsored Content: Dealerships remain vital to an increasingly digital car shopping journey
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    See more newsletter options at autonews.com/newsletters.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Digital Edition
    Automotive News 4-19-21
    THIS WEEK'S EDITION
    See our archive
    Fixed Ops Journal
    Fixed Ops Journal 4-12-21
    Read the issue
    See our archive
    MOBILITY REPORT NEWSLETTER: Sign up for our Thursday afternoon Mobility Report newsletter, your one-stop shop for the latest developments at the intersection of transportation and technology.
    WEEKLY NEWSLETTER: Sign up to start your week with the top stories from the latest issue of Automotive News, delivered to your inbox first thing each Monday morning.
    DAILY NEWSLETTER: Sign up to get the top stories of the day in your inbox every business weekday afternoon.
    Get Free Newsletters

    Sign up and get the best of Automotive News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    Subscribe Now
    Connect With Us
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter

    Our mission

    The Automotive News mission is to be the primary source of industry news, data and understanding for the industry's decision-makers interested in North America.

    AN-LOGO-BLUE
    Contact Us

    1155 Gratiot Avenue
    Detroit, Michigan
    48207-2997

    (877) 812-1584

    Email us

    Automotive News
    ISSN 0005-1551 (print)
    ISSN 1557-7686 (online)

    Fixed Ops Journal
    ISSN 2576-1064 (print)
    ISSN 2576-1072 (online)

    Resources
    • About us
    • Contact Us
    • Media Kit
    • Subscribe
    • Manage your account
    • Reprints
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • HOME
    • NEWS
      • Dealers
        • Access F&I
        • Fixed Ops Journal
        • Marketing
        • Used Cars
        • Retail Technology
        • Sales
        • Best Practices
        • Dealership Buy/Sell
        • NADA
        • NADA Show
      • Automakers & Suppliers
        • Automakers
        • Manufacturing
        • Suppliers
        • Regulations & Safety
        • Executives
        • Talk From The Top
        • Leading Women Network
        • Guide to Economic Development
        • PACE Awards
        • Management Briefing Seminars
        • World Congress
      • News by Brand
        • Aston Martin
        • BMW
          • Mini
          • Rolls-Royce
        • Daimler
          • Mercedes Benz
          • Smart
        • Ford
          • Lincoln
        • General Motors
          • Buick
          • Cadillac
          • Chevrolet
          • GMC
        • Honda
          • Acura
        • Hyundai
          • Genesis
          • Kia
        • Mazda
        • McLaren
        • Mitsubishi
        • Nissan
          • Infiniti
        • Stellantis
          • Alfa Romeo
          • Citroen
          • Chrysler
          • Dodge
          • Ferrari
          • Fiat
          • Jeep
          • Lancia
          • Maserati
          • Opel
          • Peugeot
          • Ram
          • Vauxhall
        • Renault
        • Subaru
        • Suzuki
        • Tata
          • Jaguar
          • Land Rover
        • Tesla
        • Toyota
          • Lexus
        • Volkswagen
          • Audi
          • Bentley
          • Bugatti
          • Lamborghini
          • Porsche
          • Seat
          • Skoda
        • Volvo
        • (Discontinued Brands)
      • Cars & Concepts
        • Virtual reveals (Sponsored)
          • MITSUBISHI: 2022 Outlander
          • NISSAN: 2022 Pathfinder and 2022 Frontier
          • GENESIS: 2021 GV80
          • KIA: 2021 K5
          • LEXUS: 2021 IS
          • NISSAN: 2021 Rogue
          • TOYOTA: 2021 Venza and 2021 Sienna
        • Auto Shows
        • Future Product Pipeline
        • Photo Galleries
        • Car Cutaways
        • Design
      • Final Assembly
      • China
      • Shift
      • Mobility Report
      • Special Reports
      • Digital Edition Archive
      • This Week's Issue
    • OPINION
      • Blogs
      • Cartoons
      • Keith Crain
      • Automotive Views with Jason Stein
      • Columnists
      • China Commentary
      • Editorials
      • Letters to the Editor
      • Send us a Letter
    • DATA CENTER
    • VIDEO
      • AutoNews Now
      • First Shift
      • Special Video Reports
      • Weekend Drive
    • EVENTS & AWARDS
      • Events
        • Congress Conversations
        • Retail Forum: NADA
        • Canada Congress
        • Europe Congress Conversations
        • Fixed Ops Journal Forum
        • Shift: Mobility at a Crossroads
      • Awards
        • 100 Leading Women
        • 40 Under 40 Retail
        • All-Stars
        • Best Dealerships To Work For
          • Register for the 2021 Best Dealership To Work For
        • PACE Program
        • Rising Stars
        • Europe Rising Stars
    • JOBS
    • AN Solutions
    • +MORE
      • Leading Women Network
      • Podcasts
        • Shift: A Podcast About Mobility
        • Special Reports Podcasts
        • Daily Drive Podcasts
      • Webinars
      • In the Driver's Seat
        • AAM
        • Cars.com
        • DealerPolicy
        • Gentex
        • IHS Markit
        • Remember Group
        • Reputation.com
        • Ricardo: Dave Shemmans
        • Ricardo: Marques McCammon
      • Publishing Partners
        • Allstate: Want more from your F&I?
        • Ally: Navigating the future of automotive retailing
        • Amazon Web Services: Any place, any time, any channel
        • Amazon Web Services: The power of the cloud
        • Amazon Web Services: Universal translator: Harnessing sensor data to build better automotive software
        • Capital One Auto: Dealerships remain vital to an increasingly digital car shopping journey
        • DealerSocket: 5 steps to modernizing the buyer's journey
        • Epic Games: Build stunning, real-time car configurators with Unreal Engine
        • Epic Games: Real-time tech is the next frontier of automotive
        • Epic Games: Transforming the auto industry with digital assets
        • FTI Consulting: Crisis as a catalyst for change
        • Google: 5 trends shaping the auto industry's approach to a new normal
        • Google: Google's dealer guidebook helps dealers navigate today's digital landscape
        • IHS Markit: Automotive loyalty in the wake of the COVID-19 recession
        • IHS Markit: COVID-19: The future mobility delusion
        • Level5: 2020 Automotive E-Commerce Report
        • Motormindz: Toward hyperconnectivity: 5 ways to position your business to profit from connected car
        • Naked Lime: Bring social reputation together as part of big-picture marketing
        • Ally: Do It Right
      • Classifieds
      • Companies on the Move
      • People on the Move
      • Newsletters
      • Contact Us
      • Media Kit
      • RSS Feeds