Tesla Has Profitable First Quarter Despite Coronavirus

Tesla reported first-quarter profits despite the coronavirus and shutdowns of factories.

$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 level of US-made Model 3
Model Y gross margin positive in Q1

Tesla missed qualifying for the SP500 because they did not overcome the 2019 Q2 loss with profits in 2019Q3, 2019Q4 and 2020Q1. However, they will qualify after 2020Q2 if they do not have a GAAP loss. The last quarter before SP500 inclusion must be profitable.

NOTE: Brian Wang owns shares of Tesla

Automotive gross margin of 25.5%, as well as total gross margin of 20.6% both, reached their highest levels in 18 months.

Tesla Shanghai will hit 4000 vehicle per week production by mid-2020. They have the capacity installed to exceed 500,000 vehicle deliveries this year, despite announced production
interruptions. For our US factories, it remains uncertain how quickly we and our suppliers will be able to ramp production after resuming operations. They are coordinating closely with each supplier and associated government

If Tesla restarts the Fremont factory by mid-May, then they could produce 50,000 cars in the second quarter from Fremont. This would be combined with about 50,000 cars from Shanghai.

Tesla is on track to start the first Model Y deliveries from Gigafactory Berlin in 2021.

Autopilot & Full Self Driving (FSD)
Tesla enabled stop sign and traffic light recognition and braking for our Early Access Program users at the end of Q1 and to the wider public in April 2020. As we have done with previous releases of major new features, drivers will be required to confirm their attention in order to continue. Once enough realworld data is collected, the system will become more capable and our vehicles will continue driving through intersections without a confirmation.

Written By Brian Wang, Nextbigfuture.com