Tesla faces Federal Bureau of Investigation probe over Model 3 numbers

Tesla finally posts a profit

This week, Tesla reported a rare profitable third quarter and showed evidence that its Model 3 ramp, while not quite yet reliably at 5K cars per week, has improved dramatically from where the company was this time past year.

Earlier this year, Musk pledged to step up production of the Model 3 to 5,000 vehicles per week by the end of the second quarter.

"We continue to question the USA demand for the Model 3 in a post tax credit environment", he said.

The electric-car maker earned $US2.90 a share, well above the $US0.15 loss per share expected by Wall Street analysts.

Tesla Inc surprised market players on Thursday with strong quarterly earnings and its ability to generate free cash flow.

Tesla actually bumped its reporting date by almost two weeks, Forbes reports, while many observers believed it meant the company had good news, or that it didn't want to be buried under the coverage of USA midterm elections.

Tesla's mass-market electric auto - will commence United Kingdom deliveries in mid-2019, confirms CEO Elon Musk. Tesla is now building a factory in China, which will feature production lines for two models - likely the Model 3 and Model Y - to be sold in that country.

For the fourth quarter, Tesla forecasts Model 3 production and deliveries to increase quarter over quarter.

He expressed confidence that Tesla would remain profitable, despite using cash to pay off notes.

Tesla officials "were transparent about how hard it would be" to ramp up Model 3 production, said spokesman Kamran Mumtaz.

The DOJ's focus on Model 3 production had not previously been reported. But more importantly, each success built investor confidence, allowing Tesla to raise more capital for the next vehicle.

The Model 3 sedan was a huge driver for the quarter.

"That is our goal, and that is what we are pushing very hard to achieve". Tesla has the advantage of having access to millions of vehicles with autonomous driving capabilities, which is not the case for any of the other services.

The Journal reported that the FBI is investigating whether the company made production estimates that it knew would be impossible to meet. Bloomberg ran a titled "Tesla Doesn't Burn Fuel, It Burns Cash"-complete with a graphic of Musk throwing dollar bills into a pair of Boring Company flamethrowers". Nord/LB reiterated a "sell" rating and set a $230.00 price target on shares of Tesla in a report on Tuesday, September 11th.

If Tesla cuts capital expenditures, research and development on upcoming vehicles or new hiring, investors will ask whether that reflects improving efficiency or delay of necessary spending. Between the two models, Tesla plans an annual production rate of 250,000 vehicles at the factory. Manufacturing them will certainly be expensive, but now Tesla will likely be able to tap significant profits from the Model S, Model X, and Model 3 to help finance them.

Production will initially take place in California, but Tesla is "moving rapidly" to get production going in China and wants to have that going next year, according to Musk. One of the reasons it will have only one visual display is to make manufacturing easier and further reduce the amount of wiring used in the vehicle.

Musk seemed to express frustration about The Journal's story via Twitter Friday afternoon, replying to a Twitter user who suggested the story was motivated by a desire to lower Tesla's stock price.

Tesla is at something of a turning point.

Related News:



Most liked

Text leads to Mega Millions win for Virginia woman
A New Jersey man who broke his hip saw his luck turn around when he joined a hospital lottery pool that won $1 million. Procopsis' win comes after the $1.5 billion Mega Millions jackpot was claimed earlier this week in SC .

Fans think Meghan Markle will give birth in April after THIS 'clue'
The were greeted with a huge round of applause when they entered the ballroom of Sydney's Shangri-La Hotel just after 8.15pm. She touched on her why she and her father have spoken out in public interviews since Meghan and Harry tied the knot in May.

Big Google Pixel 3 camera bug set to be squashed soon
Google's forums lit up earlier this week with news of the bug with users reporting that photos were being lost "multiple times". Download the Pixel 3 Live Wallpapers APK file for devices running on latest Android 6.0 Marshmallow and more.

Saudi Resignations, Arrests in Khashoggi Probe Seek Protect Crown Prince - Rights Group
Last year, Kushner paid a secret visit to Saudi Arabia to discuss his strategy for Israel and the Palestinians. A member of the team dressed in Khashoggi's clothes to make it appear as if he had left the consulate.

'I'm a nationalist,' Trump declares at Texas rally
With the midterms drawing near, Trump has emphasized immigration, targeting a migrant caravan heading to the USA southern border. The total number of migrants now headed to the USA border is estimated to be about 7 ,200, the United Nations said Monday.

Saudi Energy Minister: Cant cover Iran's oil production
Oil prices spiked on the move, as they did later in 1979 because of the Iranian revolution. Will limit oil supply next year if there was need.

Michigan’s Defensive Coordinator Thinks About Penn State Loss ‘Every Morning’
In the fourth quarter, the Boilermakers scored on runs of 42 yards and 40 yards, a 43-yard pass and a 41-yard interception return. The Wolverines avoided going 3-9 against Mark Dantonio with the win and here's what we learned from the MI victory over MSU.

Democrats Seize on Trump Administration's Latest Obamacare Move
During Trump's presidency, Democrats on that committee have sought 64 subpoenas, which Republican committee members have denied . It's an open seat race for the seat now held by Republican Gov.

Moody's cuts Italy's credit rating one notch; stable outlook
He said the letter is not final and there is still time which should be "used productively" to continue to exchange views. The 5-Star movement opposes such a move because it could benefit organized crime or tax cheats hiding money aboard.

Saudi attorney general says Khashoggi was killed during fight in consulate
Trump has also openly cautioned against actions that would risk USA business interests, including billions in arms sales. Trump has called the Saudi announcement a "good first step", but said what happened to Khashoggi was "unacceptable".

Prince Harry & Meghan Markle Go Barefoot At The Beach
The royal couple met with a surfing group that takes part in a mental health awareness session on the beach . She said she was up up at 4.30am this morning doing yoga in her room as she couldn't sleep.

Trump's praises 'body slam' assault of Guardian journalist
US President Donald Trump praised a congressman for a physical attack on a journalist, mimicking the assault to cheers at a rally. Gianforte was charged with misdemeanor assault after he shoved a reporter to the ground during his campaign.

US commander in Afghanistan survives deadly attack at governor’s compound
Eight US soldiers and three other North Atlantic Treaty Organisation service members have died in Afghanistan so far this year. Nabi Elham, the police commander for the southern zone with responsibility for several provinces, had survived the attack.

Canada legalizes recreational marijuana
Cannabis will now be sold in stores and ordered online, with the drugs posted to customers' homes. It's a good day for Aurora Cannabis Inc. "It's significant for all Canadians", McCarthy said.

Piers Morgan shames Daniel Craig for wearing baby ‘papoose’
A child carrier, sometimes called a papoose , allows parents to walk with their children strapped to their bodies. "Any man who wastes time quantifying masculinity is terrified on the inside", Evans responded on Twitter .