Tesla Turns a Profit, Puts Model Y Into Production Early
Tesla had a better than expected fourth quarter and estimates high deliveries for 2020.
Defying expectations, Tesla announced on January 29th in its fourth quarter and yearly 2019 report that it is indeed turning a profit.
Elon Musk’s disruptive electric car company boasted a profit of $105 million this quarter. The company made $140 million during the same quarter last year.
And there’s more good news from the California-based car company. Tesla is claiming that Model 3 production is up 42 percent over last year. Additionally, Model Y production has begun ahead of schedule, according to Tesla.
Tesla says that it has delivered 112,095 vehicles in its fourth quarter and is currently tracking to produce 415,000 vehicles within a year’s time at its plant in Fremont, California. The Model 3 makes up the majority of production and deliveries.
Model S and X production are down 29 percent compared to the previous year.
Tesla projects a successful 2020 fiscal year, claiming they should be able to deliver more than 500,000 Model 3s and Ys. The opening of Tesla’s Shanghai plant will aid in production. “Due to [the ramp-up] of Model 3 in Shanghai and Model Y in Fremont, production will likely outpace deliveries this year,” says Tesla.
EPA range estimates for the forthcoming Model Y have increased from 280 miles to 315 miles. Tesla estimates that deliveries should begin by the end of first quarter of 2020.
This isn’t the first time Tesla has been overly boastful of its capabilities. Time will soon tell if they can make announcements like a start up, but deliver like a car company.