After 'historic' quarter, Tesla looks to Europe, China

Tesla faces FBI probe over Model 3 numbers

Kamran Mumtaz, a Tesla spokesman, sent Ars a statement, saying that earlier this year the company received a voluntary request for documents, which it complied with.

Electric vehicle maker Tesla on Wednesday reported an "historic" quarterly profit driven by demand for its mass market Model 3, as the company looks beyond its U.S. home base to Europe and China. The automaker made 5,300 Model 3s during the final week of the third quarter, less than the weekly goal of 6,000 it had set for the end of August.

Tesla said that delivery and logistics were the biggest challenges within the third quarter but was able to quickly work around it by making improvements. The results were supported by an increase in Model 3's new production as well as a drop in capital expenses.

However the massive burn rate Tesla suffered in 2017 and early 2018 was a temporary situation associated with the ramp-up of Model 3 production.

The Federal Bureau of investigation, working on the territory of the United States of America showed interest in Tesla.

In early 2017, the California-based company announced plans to produce up to 5,000 Model 3s a week by the end of that year.

Production has also picked up, driving sales.

Tesla officials "were transparent about how hard it would be" to ramp up Model 3 production, said spokesman Kamran Mumtaz.

The Tesla representative said that the company did not hide the difficulty of growth of production Model 3. That didn't happen. Meanwhile, the company faced a grilling from investors and Tesla stock took wild swings amid a series of other scandals. The starting price for the Model 3 was United States dollars 49,000 in the quarter, but the Company is working to bring the price to USD 35,000.

Central to Wood's argument that Tesla could trade as high as $4,000 per share is the idea that Tesla will orient itself away from the capital-intensive vehicle manufacturing business toward software.

He expressed confidence that Tesla would remain profitable, despite using cash to pay off notes.

Musk concluded the call by encouraging the competition to invest more in their production lines: "The fact of the matter is we made the investment in the Giga factory and other companies didn't".

Tesla previously confirmed the existence of a Department of Justice probe, but reports about the scope and topic of the investigation are new.

"While the media has been focused on Elon Musk's eccentric, outlandish and at times offensive behavior, it has failed to notice the legitimate disruption of the auto industry that is now being dominated by Tesla", Citron wrote.

Labor hours per Model 3 decreased by more than 30% quarter over quarter, falling for the first time below the Model S and X levels.

Tesla executives expect to begin delivering Model 3 cars in Europe in the first quarter of next year, and in China by the second quarter.

Rejoice! Tesla, the electric auto maker that has proved immensely popular, despite its production troubles, poor quality products, and mistreatment of its staff has finally made some money.



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