Tesla posts Q1 2020 financial results — surprising despite interruptions



Tesla (TSLA) has just released its quarterly earnings report for Q1 2020 — the results are surprising despite the company operations getting interrupted globally due to the COVID-19 scenario. And in the absence of the Federal Tax Credit in the United States exhausted at the end of last year.

Tesla critics have their jaws dropped at the moment as the Silicon Valley automaker performed exceptionally well financially. Surprisingly and interestingly, Tesla Model Y contributed to the profitability. In Tesla’s history, no other new vehicle has made a profit, history made again.

Generally, for most automakers, the first quarter of the year is the weakest but this time Tesla came out strong, thanks to Gigafactory Shanghai which accelerated the Model 3 production and helped strengthen the Q1 numbers for Tesla.

Tesla posted the following Q1 2020 financial highlights and summary (find the full PDF below):

TSLA Q1 2020 Highlights:

Cash: $1.8B increase in our cash and cash equivalents in Q1 to $8.1B

Profitability: $283M GAAP operating income; 4.7% operating margin in Q1,
$16M GAAP net income; $227M non-GAAP net income (ex-SBC) in Q1,
Gross margin at Giga Shanghai approaching the level of US-made Model 3
Model Y gross margin positive in Q1

Operations: Model Y deliveries began, Significantly ahead of schedule
Increased Model S range to 391 miles with no increase in battery capacity
Reached production of 1,000 Solar Roofs in a single week

Tesla Investor Relations

TSLA Q1 2020 Financial Results Summary:

Q1 2020 was the first time in our history that we achieved a positive GAAP net income in the seasonally weak first quarter. Despite global operational challenges, we were able to achieve our best first quarter for both production and deliveries.

Although impacted by inefficiencies related to the temporary suspension of production and deliveries in many locations, our gross margin remained strong. At Gigafactory Shanghai, further volume growth resulted in a material improvement in margins of locally made Model 3 vehicles. In addition, Model Y contributed profits, which is the first time in our history that a new product has been profitable in its first quarter.

Despite the expiration of various government incentives at the end of last year, Q1 was pacing to be the strongest quarter of deliveries until our operations were interrupted in March. As a result, we remain confident in growing global production capacity as quickly as possible. We are continuing to significantly invest in our product roadmap, including improvements in technology, as well as localizing production in Shanghai and Berlin.

At the same time, we are diligently managing working capital, reducing non-critical spend, and driving productivity improvements. We believe we are well-positioned to manage near-term uncertainty while achieving our long-term plans.

Tesla Investor Relations

Meanwhile, TSLA share price closed at $800.51 on the Nasdaq, and the after-hours trading trend shows that tomorrow the price could touch anywhere from $850-870 (*Disclaimer: Just reporting, not financial advice).

TSLA: $800.51 on 29 May, 2020.
TSLA: $800.51 on 29 May, 2020.
– Advertisement –

Tesla Q1 2020 Update Letter (PDF)

Featured photo by EVClicks.co.uk (Free stock Tesla/EV images for editorial use contributed by the community).

Stay tuned for constant Tesla updates, follow us on: 
Google News | Flipboard | RSS (Feedly).

Iqtidar Ali
Iqtidar Alihttp://www.teslaoracle.com
Iqtidar has been writing about Tesla, Elon Musk, and EVs for more than 3 years on XAutoWorld.com, many of his articles have been republished on CleanTechnica and InsideEVs, maintains a healthy relationship with the Tesla community across the Social Media sphere. You can reach him on Twitter @IqtidarAlii

Latest News

2023 Tesla Holiday Update (2023.44.25) release notes leak ahead of its public rollout

Just like last year, many of the Tesla Holiday Update features have been leaked ahead of its official rollout...

Cybertruck in Beast Mode beats a Porsche 911 in drag racing while pulling another one

"Dopamine on tap," is the slogan for Tesla's Cyberbeast (Cybertruck performance variant). The automaker guarantees a dopamine rush when...

Cybertruck’s range figures disappoint Tesla customers, even the range extender doesn’t match expectations

Tesla revealed the final features, specifications, and pricing of the Cybertruck at its Delivery Event on Thursday last week....

Watch how Tesla Cybertruck performs in a crash safety test against ICE pickup trucks

We didn't hear much about Tesla Cybertruck's safety from the company's CEO Elon Musk during the Delivery Event presentation...
- Advertisement -

Elon Musk’s iPhone wallpaper of Starship’s 2nd launch tells us a bit about his phone preferences

CEO of Tesla and SpaceX Elon Musk shared his personal phone's wallpaper on X (Twitter) a couple of days...

2nd Starship launch was a success, it went way beyond stage separation and then missing in space

After 7 months of excitement, hurdles, and wait, SpaceX finally launched Starship for the 2nd time. Although both Super...

SpaceX delays Starship launch to Saturday 18th Nov to fix a grid fin on the Super Heavy rocket, says Elon Musk

SpaceX CEO Elon Musk has announced on his social media platform X that the 2nd Starship launch which was...

Tesla Tips & Tricks

Tesla owner melts snow off of his car using Defrost Mode in the extreme cold weather (video)

The actual test of an electric vehicle is conducted...

Here’s how to open a frozen Tesla Model 3/Y door handle

Snow and rain in the extremely cold weather can...

Here’s how much battery is drained if a Tesla is left unplugged for 32 days

A Tesla Model 3 owner parked her car in...

Tesla Quarterly Reports & Eearnings

- Advertisement -

You might also likeRELATED
Recommended for You