Tesla Actually Made A Profit

Tesla Model 3 (Credit: Tesla Motors)

It’s Christmas in October, or maybe an October miracle, because Tesla actually made – not lost – money last quarter! The California startup netted $22 million, shocking pretty much everyone.

This might silence doubts that Tesla can amp up its production volume and crank out massive amounts of the Model 3. The goal is to start rolling out half a million cars each year, which is about ten times the number it made in 2015.

For the last 12 quarters, Tesla has lost money. This is the second time it’s ever been in the black. What got it there, says the Wall Street Journal, has been a combination of increased sales, reduced spending and a cash windfall from selling pollution credits to other automakers.

While this is great news, GM announced its Q3 profit at $2.77 billion. That might sound like a lot, because it’s the highest the company has made in a single quarter since coming out of bankruptcy. Big sales in the US and China fueled the growth.

GM and Tesla may not seem that much alike, but they’re on a collision course. The Chevy Bolt is about to hit the market, and it will go against the Tesla Model 3. Plenty of people are waiting to see how this fight between the new kid on the block and the reformed mess turns out.