Photo: Tesla
At the beginning of the month, Tesla released the production and delivery figures for the third quarter at 145,036 and 139,300 units, respectively. The naysayers have been proven wrong once again by the Q3 2020 earnings report, which exceeds even the EV manufacturer’s expectation in terms of revenue and non-GAAP profit per share.
The so-called experts were looking forward to anything between $0.55 and $0.67 per share and up to $8.4 billion in terms of revenue, but Tesla posted $0.76 and $8.7 billion in the third quarter of the year. In addition to five profitable quarters on the trot, the Palo Alto-based automaker has also generated over $1.9 billion of free cash flow.
“We are increasingly focused on our next phase of growth,” said Tesla. “Our most recent capacity expansion investments are now stabilizing with Model 3 in Shanghai achieving its designed production rate and Model Y in Fremont expected to reach capacity-level production soon.”
Going forward, “more ambitious architectural changes” to vehicles and factories are planned to improve the cost and efficiency of manufacturing operations. Additional areas of insourcing have also been mentioned, along with the 4680 battery cells that Elon Musk presented himself at Tesla Battery Day. The tabless design of the 4680 cells “reduces cost and improves capital efficiency while improving performance.”
The Q3 2020 earnings report also highlights the automaker’s increased production capacity, now sitting at 840,000 vehicles per year from the Fremont and Shanghai plants. The total breaks down into 90,000 units for the U.S.-built Model S and Model Y, 500,000 units for the 3 and Y, and 250,000 examples of the China-built Model 3.
Tesla still expects to achieve “half a million” deliveries in 2020 although this target “depends primarily on quarter-over-quarter increases in Model Y and Shanghai production.” Oh, and by the way, Semi deliveries are scheduled to start in 2021 and the European Model Y will enter production at Giga Berlin in July 2021 if everything goes according to plan.
“We are increasingly focused on our next phase of growth,” said Tesla. “Our most recent capacity expansion investments are now stabilizing with Model 3 in Shanghai achieving its designed production rate and Model Y in Fremont expected to reach capacity-level production soon.”
Going forward, “more ambitious architectural changes” to vehicles and factories are planned to improve the cost and efficiency of manufacturing operations. Additional areas of insourcing have also been mentioned, along with the 4680 battery cells that Elon Musk presented himself at Tesla Battery Day. The tabless design of the 4680 cells “reduces cost and improves capital efficiency while improving performance.”
The Q3 2020 earnings report also highlights the automaker’s increased production capacity, now sitting at 840,000 vehicles per year from the Fremont and Shanghai plants. The total breaks down into 90,000 units for the U.S.-built Model S and Model Y, 500,000 units for the 3 and Y, and 250,000 examples of the China-built Model 3.
Tesla still expects to achieve “half a million” deliveries in 2020 although this target “depends primarily on quarter-over-quarter increases in Model Y and Shanghai production.” Oh, and by the way, Semi deliveries are scheduled to start in 2021 and the European Model Y will enter production at Giga Berlin in July 2021 if everything goes according to plan.
Google News