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Tesla’s third quarter positive earnings undoes much of Musk’s damage to stock

Tesla’s third quarter positive earnings undoes much of Musk’s damage to stock

With the S&P 500 falling 3.1% and the Nasdaq tumbling nearly 4.5%, some may have assumed Tesla (TSLA) struggled as well.

"When we started the Model 3 production ramp, we were transparent about how hard it would be, openly explaining that we would only be able to go as fast as our least lucky or least successful supplier, and that we were entering 'production hell,"' Tesla said in the statement. About this on their pages, writes the news Agency AP, reports to our website.

The Model 3 is a key part of Tesla's plan to expand from a niche player in the luxury segment to a auto maker with broader appeal. While Tesla CEO Elon Musk said in July 2017 that it appeared Tesla could make 20,000 Model 3s per month starting in December 2017, Tesla made just 2,685 Model 3 vehicles in 2017.

In 2016, the prototype of the most recent Tesla model, the Model 3, was revealed but not officially released to the public before undergoing a few additional modifications.

Tesla has battled widespread scrutiny, following Musk's August 7 tweet that he was planning to take Tesla private and had "funding secured".

Talking about Tesla's future plans - which include the Model Y, a new Roadster, a lorry and a pick-up - Musk said the firm has "the most exciting product roadmap of any company on Earth".

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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's stock, which rose 5.2% Friday during official trading, was down 1.8% in after-hours trading. Tesla showed earnings of $311.5 million during the three months ending in September, swinging from a loss of $619 million at the same time past year. Say we have the following: Uber, Lyft, Tesla, Waymo, Daimler, Cruise and Ford (F), the last of which is working on its own solution. That ramp-up is now largely over, so Tesla is generating cash, not consuming it.

Musk, 47, made earlier predictions related to the Model 3 that were even more outlandish than the ones he gave previous year. The Chief Executive Officer quelled investors during the Company's second quarter financial results saying that it will deliver profitability to its shareholders. The company produced more than 56,000 Model 3 sedans during Q3. However, Musk said that full volume production of the Model Y won't start until 2020.

Auto Data site Edmunds noted Tesla is by far the biggest electric vehicle maker in the US market, accounting for 76% of pure EV sales in the first three quarters of 2018.

Pierre Ferragu, head of technology infrastructure research at New Street Research, said, "Tesla will become one of the major premium vehicle manufacturers, like Audi and Jaguar ... within the next seven years", but its success will be from a purely go-to-market perspective, as Tesla has lower costs for marketing and distribution than other automakers.