Tesla makes a profit again, begins Model Y production early

The company is looking forward to selling more cars in 2020

Telsa’s Q4 2019 earnings report states that the company delivered a record 112,095 vehicles and began its production ramp-up on the Model Y crossover.

The report mentions that 2019 was a turning point for the electric vehicle (EV) company as it experienced high demand for the Model 3 sedan, which helped it become profitable once again.

The company also mentioned that it learned quite a bit from the Model 3 production, and has applied that knowledge to the Shanghai Gigafactory. This new factory has begun producing Model 3s in less than 10 months. It’s also been able to apply this knowledge to the production to the Model Y.

The Model Y, which was originally slated to begin its delivery schedule in the fall of 2020 has been moved up to the spring instead. The company mentions that the first few deliveries should begin near the end of the company’s Q1, which is near the end of April.

Additionally, company acknowledges that without any advertising it’s been able to sell most of its cars in 2019 to buyers who didn’t hold a prior reservation.

In 2018’s fourth quarter, Tesla’s automotive division had a revenue of $6,323,000 USD (roughly $8.3 million CAD). 2019’s Q4 posted automotive revenues of $6,368,000 USD (roughly $8.4 million CAD).

The company’s overall revenue in this quarter was $7,384,00 USD ($9.7 million CAD).

Tesla contributes its revenue uptick to its increase in vehicle deliveries. It’s hoping to increase this through more significant sales, which includes the Model Y.

Other notables

Tesla’s fleet has driven 3 billion miles in Autopilot mode.

The company has increased the range of the AWD Model Y to 315 miles (506 Km) from 280 miles (450 Km).

Tesla’s solar division is up by 26 percent.

The company’s outlook for 2020

The automaker is expecting over 500,000 vehicle deliveries throughout the year.

Both storage and solar business should grow by 50 percent.

Source: Tesla

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