Tesla reported the results of the third quarter’s analysis and impressed everyone – analysts and investors – with the stock prices skyrocketing.
Tesla confirms a profit performance for the fourth consecutive quarter, despite the Covid pandemic.
Elon Musk commented bluntly that this is:
“The best quarter ever”.
Specifically, Tesla recorded a net profit of $331 million (€280 million) between July and September 2020. These figures double (+131%) the figures for the same period last year.
Turnover figures are astonishing: 8,771 million dollars (7,433 million euros), + 39% compared to the previous year.
The operating margin rose to 9.2%, compared to 4.1% in the same quarter of last year. Adjusted gross operating margin (Ebitda) was $1,807 million (€1,531 million), an increase of 67%.
Some data on vehicles provide a good understanding of Tesla’s rosy situation: in the period July-September 2020, Tesla counted 139,593 vehicles, up 44% compared to last year. Production increased by 51% with 145,036 vehicles.
And that’s not all. Tesla expects to deliver as many as 500,000 units by the end of 2020 worldwide.
Last September, during a meeting with investors at the presentation of the new batteries, Musk assumed that between 477,000 and 514,000 vehicles would be delivered by the end of the year. The prediction seems to be met at the moment.
Tesla is counting on increasing production capacity at its Shanghai, Berlin and Texas (US) factories. The increase in Model Y sales and the improvement of the sales network also contribute to this objective.
Tesla stock on the rise
This extraordinary result yesterday boosted Tesla’s shares by +3% in after-hours trading, and a further leap is expected today.
Fusco Femiano (eToro) comments on Tesla’s extraordinary results:
“Tesla has exceeded analysts’ expectations by hitting production targets and looking to the future with $15 billion in liquidity. Awaiting the quarterly report, investors hoped that Tesla would confirm the target of 500,000 units produced by 2020. Elon Musk’s company not only confirmed that it had met its 2020 production targets, but also reported the best quarter ever in terms of revenues, operating margins and cash flow generation”.
But what was the reason for this growth? Fusco Femiano explains:
“Revenue growth was mainly driven by car sales and only marginally by tax credit, showing great momentum despite the difficult global economic context. From a profitability point of view, cash flow generation is now growing: thanks to the issuance of shares and the expansion of margins, the company now has more than $15 billion in cash and the ability to finance future operations. All these metrics have far exceeded analysts’ expectations”.
Tesla has had a perfect year from a financial point of view: despite the collapse of the markets in March, the company promptly recovered and began a rally that raised its stock price. It is currently trading at $422 on the Nasdaq and the quarterly analyses have only put investors in an even more euphoric mood.