On Wednesday, Tesla released its financial results for the third quarter of 2020. The company announced that it closed the third quarter of 2020 with GAAP profits of $ 331 million. This is the fifth profitable quarter in a row for the US automaker. Despite the pandemic, this is a big improvement over Q3 2019.
Tesla ended the third quarter of 2020 with positive free cash flow of $ 1.4 billion and $ 14.5 billion in cash and cash equivalents. Tesla said in its presentation to investors that the third quarter saw significant growth in vehicle deliveries, countering a decline in the average selling price as the company sold fewer S and X models and sold more 3 and Y models, accounting for 397 million $ 280 million of revenue, and the company paid $ 280 million in stock-based compensation for CEO Elon Musk after the company hit certain milestones.
The automaker had released data on its Q3 deliveries back in early October, but to reiterate, it made 16,992 S and X models and shipped 15,725 of them. The production of the models 3 and Y was 128,044; A total of 124,318 of these vehicles were delivered in the three months in question. It is impressive that total deliveries have increased by 54 percent compared to the previous quarter and by 44 percent compared to the previous year. Overall, the company's automotive business had sales of $ 7.6 billion.
Tesla says it has now increased the capacity of the Model 3 and Y to 500,000 vehicles per year at its Fremont, California plant and that it expects to reach full capacity in late 2020 or early 2021, the plant in Shanghai, China , has increased the capacity to 250,000 vehicles per year and now works in three shifts. The company says the Berlin facility is up and running and that the equipment should arrive "in the coming weeks," with production scheduled to begin next year.