United States based electric car maker Tesla is eyeing to make it big in the Chinese market, the largest electric vehicles market in the world even as the company post a net income of 143 million U.S. dollars in the third quarter of 2019 on Wednesday, not only beating market expectations but also surprising it also because this was the second straight quarter that the company made profits. The company has made profits in just four quarters so far in its 15 year history as a company.
The company now wants to focus more on the Chinese market for its popular electric vehicles.
For the July-September period, 6.3 billion dollars in total revenue was generated by it, Tesla said. And by the end of September this year, the company also had 5.3 billion dollars in cash and cash equivalents in hand as well as 371 million dollars in operating cash.
In the same quarter a year ago, Tesla had posted total revenue of 6.8 billion dollars and during the first half of the year, the company accumulated a total loss of 1.1 billion dollars.
During the third quarter of the current year, the company’s profit was driven by record sale of 97,000 electric vehicles (EV) which included sale of 6,000 of its Model 3 sedan every week.
By the end of this year, there would be a 50 per cent growth in total sales volume of Model 3, as is expected by the Palo Alto, California based top EV manufacturer of the US. Tesla said that the expansion plans of the company would be accompanied by cost control and preparations for the next phase of expansion in 2020 and this would be among its top priority, the company said.
Additionally, the company is also pinning its growth hopes on growth of its business and demand for its electric vehicles in China – specifically for those that are churned out of its newly constructed factory in Shanghai, eastern China.
The company said it is "already producing full vehicles on a trial basis, from body, to paint and to general assembly, at Gigafactory Shanghai."
Tesla believes that China could turn into the largest market for its Model 3 and therefore the company considers China as "by far the largest market for mid-sized premium sedans." The company is pinning its expansion and growth on the Chinese market and for its Model 3 because, according to the company, those produced in its Chinese facility will cost 65 per cent to produce than those that are manufactured by the company in the United States.
It is expected that the production line at its Shanghai factory will start production by the end of 2019 and Tesla has said that it expects to churn out about 3,000 Model 3 electric vehicles form the facility every week.
(Source:www.XinhuaNet.com)
The company now wants to focus more on the Chinese market for its popular electric vehicles.
For the July-September period, 6.3 billion dollars in total revenue was generated by it, Tesla said. And by the end of September this year, the company also had 5.3 billion dollars in cash and cash equivalents in hand as well as 371 million dollars in operating cash.
In the same quarter a year ago, Tesla had posted total revenue of 6.8 billion dollars and during the first half of the year, the company accumulated a total loss of 1.1 billion dollars.
During the third quarter of the current year, the company’s profit was driven by record sale of 97,000 electric vehicles (EV) which included sale of 6,000 of its Model 3 sedan every week.
By the end of this year, there would be a 50 per cent growth in total sales volume of Model 3, as is expected by the Palo Alto, California based top EV manufacturer of the US. Tesla said that the expansion plans of the company would be accompanied by cost control and preparations for the next phase of expansion in 2020 and this would be among its top priority, the company said.
Additionally, the company is also pinning its growth hopes on growth of its business and demand for its electric vehicles in China – specifically for those that are churned out of its newly constructed factory in Shanghai, eastern China.
The company said it is "already producing full vehicles on a trial basis, from body, to paint and to general assembly, at Gigafactory Shanghai."
Tesla believes that China could turn into the largest market for its Model 3 and therefore the company considers China as "by far the largest market for mid-sized premium sedans." The company is pinning its expansion and growth on the Chinese market and for its Model 3 because, according to the company, those produced in its Chinese facility will cost 65 per cent to produce than those that are manufactured by the company in the United States.
It is expected that the production line at its Shanghai factory will start production by the end of 2019 and Tesla has said that it expects to churn out about 3,000 Model 3 electric vehicles form the facility every week.
(Source:www.XinhuaNet.com)
