In a year focused on cost control and preparation for the future, Tesla has shown tight profit margins, but record car deliveries and a possible resurgence in residential solar may start to signal the end of tough times are coming for Tesla.
The company’s latest earnings report was released this week, following a slow start to the year in terms of electric vehicles and with a solar business seemingly mid-collapse.
After losses in Q2, Tesla has managed to reach a slim profit return in Q3, with GAAP earnings per share of $0.80, managing to break even ahead of the timeline given at the end of Q2 due to a 15% reduction in expenditure.
Compared to the Q3 of 2018, Tesla’s total revenue for this quarter sits 8% lower at $6,303 million, which the company claim is largely due to the percentage of leased vehicles, which has tripled since this time last year.
Q3 results showed a record delivery of 97,000 vehicles, as Tesla looks to gather pace to reach its minimum annual target of 360,000 deliveries, which founder Elon Musk stands by as an ambitious challenge that his company intends to meet through the addition of a further 100,000 in Q4.
The company’s solar business also showed signs of recovery, with 42 MW installed in Q3. While this is far off previous levels in previous quarters, which have surpassed 270 MW, it is a significant bounce back from the 29 MW installed in Q2.
Energy storage has also hit record levels, with 477 MWh deployed, as Tesla surpass the 1 GWh mark for 2019 so far.
Despite strong gains in June and July, Tesla’s stock remains down 23% since the start of 2019.