The first part perfectly lines up with what I've been pointing out for a long time:Chain shared a discussion he had about the Model S test program ahead of the production:
“Another good example is the long-term durability evaluation of a car. When I discussed it with Elon, I told him our engineers’ calculations led to at least a million equivalent miles of driving required before launching the car — a six-month phase required to discover potential weaknesses and fix them. My request was actually very limited in regards to the industry practices: German manufacturers don’t release a car that has not clocked 10 million kilometers and two winters. Elon, in his customary laconic way, answered: “OK, do it. But we are not delaying the launch date for it… — But we might encounter issues that will require some modifications of the production models… — Yeah, I know, but we will make the changes afterward if we have to… — Even if it involves recalling some cars? — Yes. And for the rest, we will adjust by pushing some OTA upgrades (Tesla’s main software is maintained and upgraded remotely on a regular basis, just like a PC).”
The executive said that Musk didn’t care about shipping cars with inconsistent panel gaps that could be fixed later because he believes that consumers will be willing to overlook the quality issue in order to drive the car.
Tesla reports profit for fourth straight quarter, setting it up to join S&P 500
Next steps: Musk says 'our cars are not affordable enough, we need to fix that'
Musk on a conference call on Wednesday said Tesla would prioritize growth over profit going forward and focus on making its vehicles more affordable.
"The thing that bugs me most right now is that our cars are not affordable enough, we need to fix that," Musk said on the call. "I think we just want to be like slightly profitable and maximize growth and make the cars as affordable as possible."
This is a great thread. Go back a few years and the statement was "Tesla will never be profitable." When they had their first profitable quarter, it was "when will they have another?" Who knows when they'll be profitable for a FY, this or any other. But they continue to make amazing progress.
VW Claims By 2020, Its Electric Cars Will Match Tesla At Half Price
Yes, Tesla. The rest I don't know.
Elon's quote which you posted above, flat out says not to expect significant profits for the foreseeable future. With over $8 billion in the bank, I would not be surprised to see negative quarters or even negative years going forward, until they stop investing capital into factories, service centers and Superchargers.