Tesla a third quarter of 2020 with record profits - Tesla: a third quarter of 2020 with record profits

With a profit of 369 million dollars, Tesla confirms its profitability despite heavy investments in the Model Y, three factories in development or the new generation of 4680 batteries.

Tesla confirms a record third quarter of 2020 in company history. In early October, the Californian group announced that it had delivered 139,593 electric cars in 3 months, against 96,155 units in 2019 (+ 44%). Production increased in parallel by 51% to 145,036 vehicles, with Model 3 and Model Y accounting for 88% of the volume. With such numbers, one had to expect largely positive financial results.

Record finances in summer 2020

The automaker's turnover jumped 39% (6.2 billion euros), a lighter trend. Tesla explains this by lowering the selling price of some of its models and the shifting of customers from Model S / X to Model 3 / Y.

Operating profit was $ 809 million (€ 684 million) for the last quarter, a record for the company. This is also the fifth quarter of consecutive profits, while achieving 9.2% profitability. In the third quarter of 2019, the balance sheet was $ 261 million (€ 220.5 million) with a margin of 4.1%. The net result is $ 331 million (€ 280 million), more than double the previous year.

Q3 2020 Q3 2019 Evolution
Turnover $ 8.77 billion $ 6.3 billion + 39%
Operating income $ 809 million $ 261 million + 210%
Net profits $ 331 million $ 143 million + 131%

Tesla also managed to set aside a "Free cash flow ”(Amount available after investment) of $ 1.4 billion over these three months. This therefore means that research and development (peak of $ 366 million vs. 334 million in 2019) weighs much less than sales and operating costs activity. The days when Tesla was a money pit are therefore well and truly over.

500,000 Tesla in 2020 despite the Covid?

Tesla gives some information on the production. The original Fremont site would have reached the capacity of 590,000 annual units (including 500,000 Model 3 / Y), while that of Shanghai has 250,000. The objective remains 500,000 deliveries for 2020, despite the Covid-19 and containments (or even re-containment).

The Model Y will soon be made in China, but will also join "The Gigafactory Berlin and Gigafactory Texas" in 2021. The Tesla Semi electric truck is also set to begin its career next year, but no word on the Roadster 2 or the Cybertruck electric pickup.

Elon Musk also recalled the outline of its future 4680 batteries and its cost reduction plan. He did not provide more details on "the car at $ 25,000" promised for 2023, which should help reach 20 million cars by 2030. This number is a cumulative (the manufacturer has so far 1 million), or an estimate of 3.5 million vehicles per year within 10 years.

1603355669 368 Tesla a third quarter of 2020 with record profits - Tesla: a third quarter of 2020 with record profits

The Tesla Gigafactory Berlin in October 2020