Investor's Corner
Tesla and Panasonic expect profitability amid improving Model 3 production ramp
Tesla’s third quarter financial results were a pleasant surprise to Wall Street. In the days and weeks leading up to the company’s earlier-than-expected third-quarter earnings call, speculations were high that Tesla would either break-even, or post a very small profit. Neither happened, as the electric car maker posted $6.8 billion in revenue, beating earnings estimates with a GAAP profit of $312 million.
According to Elon Musk, that is just the beginning. During the third quarter earnings call, Elon Musk stated that he thinks Tesla could be cash-flow positive and profitable for all quarters moving forward. In his recent appearance at the Recode Decode podcast, Musk reiterated this point once more.
“I said earlier this year, I think we will be cash-flow positive for all quarters going forward,” Musk said, adding that he does not think Tesla would need any more investment. When asked if he believes Tesla can push through just by selling electric cars and battery storage products, Musk answered in the affirmative.
Elon Musk’s affirmation of Tesla’s profitability in the coming quarters comes amidst the equally optimistic outlook of Panasonic Corp President Kazuhiro Tsuga. In a statement to Reuters, Tsuga noted that Gigafactory 1 is on the verge of finally yielding returns for the Japanese battery maker. While Panasonic is still losing money as it ramps its battery cell production capacity in the Nevada facility, Tsuga stated that profits are likely underway in the near future.
“We will be in a position to deliver profits at a very early stage. There is no doubt about it, once we complete the current build-up. Once things settle down, you can control profit on line-by-line basis. The first ten lines are pretty much already there,” he said.
Tsuga further remarked that Panasonic’s investment in Gigafactory 1 would likely exceed 200 billion yen ($1.8 billion) once the expansion of its production lines is complete. For now, Tsuga noted that Panasonic has 11 battery cell production lines running in the Gigafactory, though two more are expected to go online by the end of the year. The Panasonic exec further pointed out that it has dispatched more than 300 people to the Nevada facility to ensure that it can keep up with Tesla’s demands.
Panasonic Chief Financial Officer Hirokazu Umeda is optimistic about the company’s performance in the coming quarters. In a statement to reporters in Tokyo on Wednesday, Umeda remarked that Panasonic has managed to hit a threshold where it can produce batteries in the pace required by the American electric car maker.
“We are finally at a place where we can move in lock-step with Tesla and make as many batteries as they make cars. It’s a relief, because they went through hell this September. And so did we,” Tsuga said.
Elon Musk believes that Tesla’s Model 3 ramp has reached a stable point. Responding to a question about the vehicle in the recent Recode Decode podcast, Musk stated that Tesla is “over the hump” in terms of the electric sedan’s production. Musk further pointed out that Tesla could probably hit a production rate of 6,500 Model 3 per week at its current state, though the company’s employees would have to do a notable amount of overtime to achieve a target.
“For us, making 5,000 cars in a week for Model 3 is not a big deal. That’s just normal. Now we’re working on raising to 6,000 and then 7,000 Model 3s a week, while still keeping costs under control. We could probably do 6,000 or more, maybe 6,500 Model 3s a week right now, but it would have to stress people out and do tons of overtime,” he said.
With the announcement of the Mid Range Model 3 and the ongoing phase-out period for the $7,500 federal tax credit, Tesla seems poised to deliver yet another impressive quarter this Q4. Apart from Panasonic’s upgrades in Gigafactory 1 and the installation of new Grohmann machines, Tesla has also registered more than 61,000 new Model 3 VINs in October alone. That’s the equivalent of all Model 3 VINs that the company filed during the first 11 months of the electric car’s production.
Lucid CEO Silvio Napoli responded to rumors of an imminent bankruptcy that was reportedly being mulled after a report stated the automaker was working with the firm AlixPartners to iron out its next steps.
The company felt a massive loss on Wall Street yesterday, as the report essentially pushed the stock down as much as 55 percent on Tuesday.
The report, published initially by Eletric-Vehicles.com, claimed Lucid was essentially in dire straits and was told by AlixPartners, a commonly used restructuring advisor, to either take shares private or file for Chapter 11 bankruptcy protection.
Lucid’s head of Communications, Nick Twork, immediately challenged the report and stated the company “has sufficient liquidity to carry its operations well into next year.”
Now, the company’s CEO is chiming in as well, stating that the report is “so far from the facts that they require a direct response.”
Napoli said:
“Lucid is not considering bankruptcy or a transaction to take the company private. Those reports are false. The Board did not explore either scenario. Period.
As disclosed in our most recent quarterly filing, Lucid has sufficient liquidity to fund its operations well into next year.
We work with outside advisors to improve operational performance and execution. They are not advising Lucid on a take-private transaction or bankruptcy, and any suggestion that they have recommended either course of action to management or the Board is false.
My priority is clear: turn this company around. That is where the leadership team and I are focused.
I look forward to providing a full update during our quarterly earnings call on August 4th.”
🚨 Lucid CEO Silvio Napoli calls rumors of financial issues “so far from the facts that they require a direct response.”
Read his full remarks here: https://t.co/t3Pg1NHvzy pic.twitter.com/LvHUPhO4Qf
— TESLARATI (@Teslarati) July 15, 2026
It seems pretty clear that Lucid is confident things will be okay, and, to be honest, they should not have much to worry about, especially considering the company has been backed by the Saudi Public Investment Fund (PIF) for years. It has solid financial backing, and its sales, while weak, are pretty much right on par with a company of this age.
Lucid also sent a Cease & Desist letter to the publication for their report.
Lucid shares have rebounded nicely and are up nearly 21 percent at the time of publication. As soon as the company dispelled the rumors of bankruptcy yesterday, the stock began to climb back toward more reasonable levels.
Electric vehicle maker Lucid Group has denied rumors of an imminent bankruptcy after a report from this morning sent the stock on a dramatic drop on Wall Street, seeing losses of more than 40 percent during trading hours.
Lucid’s Director of Communications, Nick Twork, responded to the report from Eletric-Vehicles.com, which stated the company’s restructuring advisor, AlixPartners, was asked to review two decisions: taking Lucid shares private or filing for Chapter 11 bankruptcy protection.
The report also claims AlixPartners told the Lucid board to “concentrate on Gravity production while improving its quality, and to temporarily hold back the Lucid Air, the sedan that has defined the company since its launch.”
Twork said:
$LCID The rumors are completely false. The company has sufficient liquidity to carry its operations well into next year, as recently published in its last quarterly filings, and it has not formed any special Board committee to explore the scenarios reported today. Our focus is…
— Nick Twork (@ntwork) July 14, 2026
Shares rebounded after the response to the report, halving its losses as the trading day neared 3 p.m. Eastern.
Lucid has struggled to get its sales off the ground and into more respectable numbers, but the company is in its early years, when things are hard to begin with. It is also backed by several notable investors, including the Saudi Public Investment Fund (PIF), which has nearly limitless money and likely would not ditch an investment of this size so soon.
Lucid shares were down just 14 percent at the time of publication, a far cry from the 55 percent its losses topped out at during the day.
Tesla received a price target upgrade just on the heels of what was a crazy successful quarter for its automotive business, as the company reported a delivery beat of over 15 percent for Q2.
Jefferies analysts are upping Tesla’s price target (NASDAQ: TSLA) to $400 from $375, while maintaining their “Hold” rating on shares, and the strong automotive deliveries from Q2 is a big reason. However, there are some other catalysts that Jefferies believes position Tesla for a strong position in the second half of the year.
Strong Deliveries
Tesla reported 480,000 deliveries for Q2, while Wall Street was between 395,000 and 405,000, as an overall consensus. It was an incredibly strong quarter from a delivery perspective, and Tesla sold well more than it produced during the three months.
Tesla crushes Wall Street expectations, beats delivery estimates by over 15 percent
While vehicle deliveries are not necessarily looked at in the light that they used to be, Tesla still maintains a lot of advantages for keeping deliveries strong. With the loss of the $7,500 EV Tax Credit last year, Tesla still maintains a strong demand case for its EVs.
Robotaxi Performance
Tesla has been operating Robotaxi for over a year now, as it launched in Austin in mid-2025. That program has expanded to Houston and Dallas, the San Francisco Bay Area, and, most recently, Miami, Florida, the suite’s first appearance in the Sunshine State.
While the Robotaxi suite is still in its early phases and Tesla is working through things like fleet size and wait times, the company has been able to undercut the pricing of its competitors and has a great safety record.
Merger Speculation with Tesla and SpaceX
This is perhaps the biggest topic that many are speaking about with Tesla and SpaceX, and it is the one thing that seems to be on the mind of every investor.
Jefferies warns that growing talk of a Tesla-SpaceX merger could cause Tesla stock to trade more like a SpaceX proxy, which may disconnect it from underlying automotive fundamentals. SpaceX has a lot going for it, especially its compute deals that have been widely publicized as of late.
Profitability in New Projects Could Take Some Time
Tesla has a few long-term ventures in the pipeline, most notably the Optimus project and Robotaxi, which is launched but will take several years to expand to a meaningful level that resonates with everyday people.
This is something that investors need to be careful of. Tesla’s projects could take some time to round out, so Jefferies advises that these may carry initial losses, rather than immediate profit. Seasoned Tesla investors have echoed something like this for a long time; they knew going in it would not be an open-and-shut strategy. It was going to take time.
These new projects are no different.
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