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

16 thoughts on “Tesla Has Profitable First Quarter Despite Coronavirus”

  1. Asymptomatic rate is at least 10x the hospitalized rate per antigen tests in New York. So no, you’re overstating it by quite a bit.

    If you’re 75+ and *hospitalized* for coronavirus. BIG difference.

  2. The highest age bracket given int he worldometer stats is 75plus, at which point the death rate is 14%, or about 1/7.

    So almost, but not quite as dangerous as playing Russian roulette with a classic six shot revolver. Though there are of course revolvers with more than six chambers.

  3. Ascending the learning curve. The cars will get better and cheaper and more profitable.

  4. If you are over 70s and get Corona it would be safer to play Russian Roulette. The risk varies by sex, age and race. The worst to be is a black male over 70. Thank God there aren’t many.

  5. The Corona started in March, so don’t think the rest of the year will be as good as the first quarter.

  6. He’s complaining about germ paranoia. So more likely his “full Hughes” version would be swimming in untreated sewage.

  7. “Elon Musk just declared that he’s selling almost all his physical belongings and ‘will own no house’ and that he thinks Tesla’s stock price is ‘too high’”. I think Elon… is becoming like the Howard Hughes of his generation… hopefully he’s Not becoming paranoid of germs and pissing in bottle in his office bedrooms..

  8. Q2 unfortunately won’t look as nice, due to the US factories being shut down.
    China production will help a little.

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