Hello and welcome in to the Wednesday October 24th 2018 edition of Tesla Daily Unofficial Tesla Podcast.

My name is Rob Maower. Today we are talking about Q3 earnings.

What a phenomenal, phenomenal earnings report from Tesla today.

Congratulations to everybody working at Tesla that worked so hard to produce these amazing

results. Tesla as a company changed on a fundamental level today.

This quarter has proven that electric vehicles can be manufactured at scale and can be produced

profitably.

Overall, these results were ahead of even bullish forecast.

Tesla delivered $6.8 billion in revenue, up 129% year over year and 71% sequentially quarter over quarter.

Even more impressive than the revenue growth were the metrics underlying revenue.

I mentioned yesterday kind of the four things that I was looking for,

the first of which was model three gross margin and that delivered a beat beyond I think anybody's

expectations with model three gross margin for Q3 coming in above 20%.

That achievement is something that Bears thought would never be possible for the model three.

For Tesla to achieve that and grow gross margin for model three so much in just one quarter

from Q2 where it was slightly positive to Q3 above 20% is incredibly impressive.

Tesla after all of their expenses

posted net gap income of $312 million

and non-gap net income, $516 million.

That gives them a gap net income margin of 4.6%

and a non-Gap net income margin of 7.6%.

For some context there, another automaker that you may have heard of,

...