Tesla recently released its business performance results for the final quarter of 2018, with the company continuing to remain profitable after successfully turning its tides in Q3 2018.

However, while Q3 2018 saw a net profit of USD311.5 million, the company only registered USD139.5 million in net income for Q4 2018. Across all four quarters, Tesla ended 2018 with a net loss of USD976 million, which is an improvement from the USD1.96 billion loss it recorded at the end of December 31, 2017.

Looking at other figures, operating revenue for Q4 2018 was higher than Q3 2018 at USD7.22 billion compared to USD6.82 billion. The rush to snap up electric vehicles before the US government gradually decreases the federal tax incentives on electric vehicles is largely the cause of the increase.

The company delivered 63,359 Model 3 vehicles in Q4 2018, eclipsing the 56,065 units sold in the quarter prior. Meanwhile, 27,607 Model S and Model X vehicles were delivered in Q4 2018 compared to 27,710 units in Q3 2018.

Revenue from automotive sales alone stood at USD6.07 billion (Q4 2018) compared to USD5.88 billion (Q3 2018). For the final quarter of the year, Tesla’s cash reserve ended at USD3.69 billion, marginally higher than the USD3.37 billion it recorded during the same corresponding period in 2017.

Elsewhere, the downward trend in capital expenditure (capex) continued into Q4 2018 at USD325 million compared to USD510 million in Q3 2018. However, the company notes that its USD141 million land acquisition in China is reflected in operating cash flow, and is excluded from capex – the total was USD2.1 billion.

In 2019, the company expects Model 3 production to increase further to a sustained rate of 7,000 units per week by the end of the year. With the inclusion of Gigafactory Shanghai, which is expected to output 3,000 Model 3 vehicles weekly, Tesla is aiming to produce 10,000 vehicles per week.

Between Q4 2019 and Q2 2020, the company is targeting annualised Model 3 production in excess of 500,000 units. The Model 3’s expansion into Europe and China will help the company reach its target of delivering between 360,000 to 400,000 vehicles in 2019 – a 45% to 65% growth compared to 2018.

In terms of capex spending for 2019, Tesla expects to spend about USD2.5 billion, with development on Gigafactory Shanghai, the Model Y and Tesla Semi being primary initiatives