TU-TESL

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On October 21st, the company's third quarter results are expected to be released after the U.S. stock market closes on October 23rd (early October 24th, Beijing time), and investors will pay more attention to the quarterly results of the Silicon Valley automaker than usual. Tesla investors are most concerned about the company's profitability. In the past decade, the company has made profits in just four quarters. What are the obstacles to Tesla's profitability and whether the company's model Y model can turn the tide. After model 3 was launched last year and delivered globally this year, Tesla no longer faces demand issues. Tesla has achieved record deliveries for two consecutive quarters this year, thanks to strong sales of model 3. In the second and third quarters, it delivered 95200 and 97000 model 3 vehicles, respectively. Despite these records, however, the company has failed to maintain profitability. In fact, Tesla's second quarter loss exceeded expectations. Investors were spooked by Tesla's second quarter results, and many were not optimistic about the company's third quarter results, due on October 23. Analysts expect an adjusted net loss of $79.2 million, or 42 cents a share, for the quarter. The sales mix of model 3 reduces profitability. Despite its strong delivery, Tesla's losses may be related to the low profit margin of model 3. The cheapest model 3, the standard endurance plus version, will cost $39940 from $38990, according to Tesla's website. At the same time, Tesla also increased the range of the basic model 3 from 240 miles to 250 miles. These changes are expected to help the company achieve its profit goals. In addition, with the federal government's tax credit for its cars due to expire in 2020, its car demand is likely to remain strong during the fourth quarter. Another profitable catalyst for Tesla could be model y, which was launched in March. The compact crossover has a 300 mile range and is expected to be delivered in the fall of 2020. Although the sales price will be higher than model 3, the cost and capital investment will be lower because the two models use the same platform. Innovation will also help reduce Tesla's costs. It is reported that Tesla is preparing several major improvements in the production and manufacturing of model y, including the introduction of a large die-casting machine, which can assemble most of the framework of model y into a large piece. "This may reduce manufacturing related costs, including but not limited to plant operating costs, processing costs, time, and other equipment and labor costs," said gentesla's patent application Tesla CEO Elon earlier this year said that Tesla would use aluminum casting design in the body of the model Y model instead of stamping steel and aluminum parts. "When we introduce the large casting machine, we can turn 70 parts into one. The robot doesn't need to assemble so many parts together, which greatly reduces the cost." Tesla initially planned to produce model y at a super plant in Nevada. However, the company has also added a fifth production line at its Fremont plant, where production may be faster due to the high degree of overlap between the y-car and model 3 components. It is reported that the prototype of model y has been discovered several times in the past few days. The findings may indicate that remote testing of the vehicle has begun, the report said. A timely production plan for the model Y model could help Tesla achieve sustainable profitability. Morgan Stanley analysts believe the company's model y and pick-up trucks could significantly expand their market share. Auto giants and general motors are also investing heavily in electric vehicles to compete with Tesla. Tesla shares fell 1.92% to $256.95 on Friday, and have fallen about 20% so far this year, underperforming the broader market.