Will the Tesla Have a Record Breaking Quarter in Every Way?

In five days, Tesla will release its quarterly earnings. Elon Musk said a month ago that Tesla had a decent shot at having a record-breaking quarter in every way. Tesla did delivery a record number of cars with 95,200 cars delivered and 87,000 cars produced.

Tesla’s previous best quarter was Q4 of 2018 with 86,555 produced and 90,700 delivered.

Tesla had positive earnings in two previous quarters. They made $1.75 per share in 2018 Q3 and $0.78 per share in Q4 of 2018.

A record quarter would be more than $1.75 per share in earnings for the second quarter of 2019. If they earn more than $1.53 per share in 2019Q2 then Tesla would be profitable for a full year when the last four quarters are totaled. This would mean Tesla would have a PE ratio. This might be sustainable as Q3 and Q4 tend to be better for car sales and Tesla could start ramping up production at the China factory. The China factory will enable more cars to be produced and delivered and those should be more profitable cars because of lower production costs. The China factory will have some higher costs during its ramp-up phase.

2020 and 2021 are looking very good for Tesla. 2020 should see the China factory ramp-up to full production. Tesla could scale to 1 million cars per year with full production at two factories in 2021.