The Californian tech company has been facing financial hardships of late and its CEO had promised shareholders in 2018 that Tesla would start turning a profit this year. The firm hasn’t ended a year with surplus net income for at least 7 years.
Tesla’s latest financial report brought the news that the company’s shareholders wanted to hear — the electric car producer ended the quarter with a $312 million profit. Called “historic” by the company’s CEO Elon Musk, the financially successful third quarter comes two years after the last profitable quarter for Tesla.
In the report, Musk credited the growth of net income to the team’s “ingenuity and incredible hard work,” as well as to its “manufacturing strategy.” The company’s share price has spiked by 10% following the report.
Tesla has been going through financial difficulties recently having no profitable quarters in two years while at the same time sustaining considerable losses. Since the announcement of the mass market Model 3 car and the surge in orders for the car in 2017, Tesla has been struggling to grow its production rates to deliver cars on time.
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Moreover, the company has lost several of its top executives. The behavior of its CEO has also caused several drops in its market value and even brought about a US Securities and Exchange Commission (SEC) investigation into Tesla’s activities, following Musk’s announcement of his intention to make company private. SEC and Tesla settled their dispute with Musk agreeing to pay a fine and to step down as the company’s chairman, while remaining its CEO.