Tesla Q1 Revenue Jumps 32% YoY to $5.99B, TSLA Stock Rises 9% After Hours

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by Teuta Franjkovic · 4 min read
Photo: Depositphotos
Photo: Depositphotos

Tesla reported Q1 results, including a $16 million profit. A Covid-19 outbreak in China forced the company to suspend manufacturing in Shanghai for more than a week in February, and in the U.S. at the end of March. TSLA stock jumped 9% after hours.

American electric vehicle and clean energy company Tesla Inc (NASDAQ: TSLA) revealed on Wednesday that its Q1 revenue increased to $5.99 billion, jumping 32% year-over-year. Operating expenses were down by 13% in the same period to $951 million, and operating margin was 4.7%. Net income grew to $16 million, up from a loss of $702 million in the Q1 2019, which represents a gain per share of $0.09.

Total production in the first three months of 2020 rose by 33% to 102,672, while the number of deliveries grew by 40% to 88,496.

Meanwhile, Tesla (TSLA) is in the green. During the trading session, TSLA rose by 4% to $800.51. After hours it jumped another 8% to $871.99. The market cap is 147.38 billion.

First Time to Achieve Positive GAAP Net Income

In its press release, the company said:

“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. We remain confident in growing global production capacity as quickly as possible.”

The truth is, the company had walked back previous guidance in Wednesday’s investor update. It said that even though it has “capacity installed” to hit 500,000 vehicle deliveries in 2020, it is still pretty much not sure on which way and on which speed its American car plant, and suppliers, can boost production following Covid-19 restrictions.

The company added that its near-term profit guidance is “currently on hold,” closing down eventual hopes that it may accomplish all four quarters of profitability one by one, and be qualified to join the S&P 500.

Earlier, Tesla was stating that it had delivered around 88,400 vehicles in the first quarter of 2020, including combined deliveries of 76,200 Model 3 sedans and Model Y cross-over SUVs, and combined deliveries of 12,200 of the older and more expensive Model S and X vehicles.

Tesla Has $5.1B Automotive Revenue in Q1

Regarding automotive revenue, it hit $5.1 billion.

This is the first quarter since Tesla opened its factory in Shanghai, and also the first quarter of Model Y deliveries and production.

Just for the comparison, in the last quarter, revenue was $7.38 billion. The thing is, that the fourth-quarter revenues are usually considered the highest of the year because of seasonal factors. Q1 2019 revenues were $4.54 billion.

Swinging the Shanghai Production

In order to curb the coronavirus outbreak, U.S. government health orders somewhat forced Tesla to swing its production at its new car plant in Shanghai for two weeks in February. However, in March, Tesla confronted an even longer restriction in the U.S.

Be it as it may, CEO Elon Musk managed to raise $2 billion in a stock offering in February just before the coronavirus from China expanded into a global pandemic.

Since March 24, Tesla’s leading U.S. car plant in Fremont, California, has been operating at a minimum basic level. This was ordered by Alameda County public health orders and it basically means that operations primarily include physical security around the facility, and maintenance of equipment and inventory there.

Tesla Shut-Down Happed in Q1 to Impact Q2

The company also temporarily halted production temporarily at its battery plant in Nevada, as well as in its New York facility where it makes components for its batteries and its electric cars charging stations, together with some solar panels.

The effect these shut-downs had on the company are pretty much expected to hit its balance sheet in the next quarter.

Tesla already carried out furloughs, pay cuts and discontinued cooperation with all contractors except essential ones. In spite of Covid-19 related business interruptions, Tesla managed e to sell its vehicles online and deliver them to customers with a “contactless” delivery option throughout the U.S., and to keep servicing its customers’ cars.

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Teuta Franjkovic
Author: Teuta Franjkovic

Experienced creative professional focusing on financial and political analysis, editing daily newspapers and news sites, economical and political journalism, consulting, PR and Marketing. Teuta’s passion is to create new opportunities and bring people together.

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