Tesla posts smaller fourth-quarter profit than previous quarter

FILE PHOTO: A 2018 Tesla Model 3 electric vehicle is shown in this photo illustration taken in Cardiff, California, U.S., June 1, 2018. REUTERS/Mike Blake/File Photo

Tesla Inc on Wednesday reported a smaller fourth-quarter profit compared with the previous three months and said Model 3 production volume in California should reach 7,000 units per week by the end of the year.

The Silicon Valley electric carmaker said it made a net profit of $139.5 million in the three months ended Dec. 31, compared with a $311.5 million profit in the third quarter, when it benefited from regulatory credits.

Tesla also said its optimistic target was to achieve a very small GAAP net income in the first quarter.

Reporting by Sonam Rai in Bengaluru and Alexandria Sage in San Francisco; Editing by Bernard Orr