The automobile manufacturer also signalled it has substantially cut down the costs for launching production of its high volume Model 3 sedan next year, Reuters reports.
The third quarter profit and a leaner capital spending plan could help grease the wheels for Musk if he does seek to tap the markets for cash. Turning a profit, even for one quarter, should help counter skeptics who have questioned his ambitious plans for combining Tesla and solar panel maker SolarCity (SCTY.O) into a company that offers roof-to-garage no-carbon energy systems.
Musk has made promises to investors before related to the timing of product launches, production and profitability, only to walk them back.
Earlier this month, Tesla told investors it expected to raise capital this year to fund the Model 3 launch, which will involve a substantial investment in machinery and product development. But Musk signaled in a tweet earlier this month that was no longer the case.
Tesla Motors reiterated that the mass-market Model 3 sedan was on plan for deliveries in the second half of 2017. The Model 3 has a starting price of $35,000, about half the price of the current Model S sedan.
In the short term, Musk said sales of a new 100 kilowatt-hour version of the Model S, which starts at $134,500 and can travel 315 miles (507 km) on a charge, will be key to profitability. “I receive daily updates” on Model S P100 production,” he said.
Tesla said it planned capital spending of $1.8 billion for the year, with just over $1 billion of those outlays coming in the fourth quarter. However, that new total capital spending forecast for this year is about 20 percent lower than the automaker’s previous forecast of $2.25 billion.
Tesla’s results were lifted by $139 million in sales of California zero emission vehicle credits. Rival automakers can buy the credits rather than sell electric cars of their own. That was comparable to what the company booked from sales of so-called ZEV credits for all of 2014, said Cowen analyst Jeffrey Osborne.
