Tesla surprised with strong profit
The company returned to profitability in the third quarter after two periods of losses, stocks soar 21%.
Stocks impacted: Tesla Inc. (TSLA)
Tesla announced that it made a profit of $143 million during the third quarter of 2019 due to record deliveries and cost cuts. The company lost $408 million in Q2 2019, which followed even heavier losses in Q1 2019. Despite the fact that average sale prices have decreased, Tesla said its automotive gross margin is now 22.8%, which is higher than previously this year. The automaker posted a cash balance increase to $5.3 billion and reported a profit of $1.86 per share. Moreover, production in Shanghai and for Model Y are ahead of schedule, with the latter expected to launch by the summer of 2020. Shares rose over 20% to $307.12 after hours on the news, crossing $300 for the first time since March 1.
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