Tesla is profitable fifth time in a row, but it’s not because of the car sales
The company makes money by selling quotas
Tesla company closed a quarter for the fifth time in a row with a profit. In the three months prior to September, the maker of electric vehicles put a profit of $ 331 million in the books. The company is also on course to deliver half a million cars this year.
With the profit rate, the company of founder and CEO Elon Musk managed to exceed the expectations of analysts. Tesla did the same with his sales of nearly 8.8 billion dollars, where 6.3 billion dollars was raised a year earlier.
Tesla earlier expected to deliver 30 to 40 percent more cars this year compared to 2019. With it, the company could be shipping more than 500,000 models for the first time. The impact of the COVID-19 countermeasures moderated Tesla’s tone earlier.
In the last few months of the year Tesla still has to deliver at least 181,000 cars to reach its target. That would mean a 30 percent increase on a quarterly basis. Tesla stressed that the achievement of the goal has become a little more difficult lately. Even so, the company maintains its ambition.
At the beginning of this year, before the pandemic erupted in all the intensity, Tesla had no doubt about the stated goal of half a million cars delivered, which would mean an annual increase of 36 percent.
Tesla makes money, by the way, by selling emission quotas to industries that do not yet meet emission standards in regions such as Europe and California. Investors would like to know whether the company can be profitable in making and selling its cars.