Tesla is finally making money on the Model 3
Tesla may have struggled through “production hell” to build the Model 3, but the car has helped the company set a new record: $4 billion in revenue in the second quarter of 2018, according to an earnings report published on Wednesday. It also reached another milestone: the Model 3 is finally starting to make Tesla some money.
The Model 3’s gross margins, a measure of the revenue that the company retains after costs associated with producing it, turned “slightly positive” in Q2, according to the company. That’s despite the fact that production was still ramping up and that Tesla had yet to ship any of the expensive All-Wheel Drive performance versions of the car. “This was a significant achievement in the ramp of Model 3,” the company...