The Tesla reported its results for the fourth quarter of last year made an overview of the whole of 2018. For the second consecutive quarter the company achieved a profit. And it came from a series of embittering substantial losses quarters. Elon Musk seems to be the type of CEO who is always looking to work at or above his limit. Since a constant challenge from Tesla is to achieve, maintain and expand his production goals.
In 2018, the company saw the need to increase its sales and cut costs. Even after so many losses. By next March, she has a debt of more than $ 900 million to take away. Musk said the company has the money to make the payment. But his efforts to increase profitability are clear. In the fourth quarter of 2018 profit was $ 139.48 million. This is a good number compared to the loss of US $ 675.4 million obtained in the same period of 2017.
Musk said he is optimistic for the first quarter of 2019 but acknowledges that the profit margin should be minimal. With business improving in the coming quarters by the end of the year. The forecast is to sell from 360 to 400 thousand cars. That means a growth between 45 and 65 per center compared to 2018.
The Model Y
Mixing new and old challenges, starting this year the automaker will start producing the Model Y. It’s a sport utility vehicle. But it can achieve its mass production only by the end of 2020. When the factory that is in the process of construction in Shanghai is ready. Therefore, Model 3 will still have to carry the company “on the back” for the whole year 2019. To do so, it expects to reach the goal of 7,000 vehicles per week by December.
One of Tesla’s difficulties is that the tax credit offered by the US government has fallen by half due to the company’s own success. And by the middle of 2019 this credit should suffer another reduction. For that reason, she had cut prices for all car models by $ 2,000. But Model 3, which was expected to be $ 35,000, in some cases, usually cost more than $ 50,000.
For the future, the letter in the assembler’s sleeve should be Model Y. It will inherit the same Model 3 manufacturing process, which will provide a more economical and fast production. In addition to the fact that 75 percent of the Model Y will be the same as Model 3.