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Tesla reports a rare quarterly profit, the largest ever

Tesla shares closed at 288.50 SEK on Wednesday before revenues were released, more than 20 percent from early August. The…

Tesla shares closed at 288.50 SEK on Wednesday before revenues were released, more than 20 percent from early August. The stock increased by 10 percent in aftermarket trading.

Tesla next year will start making a more affordable version of the model 3 priced at $ 35,000, and Mr Musk has said that Tesla would lose money on the model if the company produced it now. The cheaper model 3 is important because the $ 7,500 federal tax credits available for Tesla cars buyers will decrease by half January 1 and will be completed in 2019, which will make the company’s cars more expensive.

Tesla recently launched a model 3 priced at $ 46,000 as an interim step before it could produce the $ 35,000 version. “We do not really have the ability to get $ 35,000 directly,” said Mr Musk, but he said that Tesla was “probably less than six months from it”.

Although Tesla finally strikes its production stage, “The company is still out of the woods,” says Jeremy Acevedo, Chief Industrial Analysis at Edmunds Market Researcher. “The $ 35,000 model 3 is a fantasy and with the full tax credit for the car now out of the table, it becomes interesting to see how many buyers are willing to continue waiting for it to become a reality.”

The company is still struggling to deliver cars to customers, as Mr Musk has described as “delivery logistics hell”. The quality of model 3 has also been questioned so many customers have complained to receive cars with scratched paint, cracks and other defects.

Consumer reports on Wednesday lowered Tesla’s reliability ranking with six places, to 27 of 29 automakers. The newspaper said members complained about the suspension in the company’s full-size S-sedan model.

The income statement comes after several turbulent months for Tesla and Mr Musk. Last month, the Securities and Exchange Commission revoked Mr Musk and accused him of securities fraud on Twitter that he had “funding secured” to take Tesla privately at $ 420 per share. The plan proved to be much less than he had suggested.

In order to resolve the matter, Musk agreed to resign as chairman while retaining his executive title. S.E.C. continues to investigate the company’s previous claims about its production goals, and the Ministry of Justice has also looked at Mr. Musk’s go-private tweet.

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