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Jun 30, 2020
Tesla Q2 2020 Earnings Report
Tesla posted its fourth sequential GAAP profit and generated positive free cash flow despite factory shutdowns.
Key Takeaways
Tesla reported a GAAP profit for the fourth consecutive quarter and positive free cash flow of $418M despite the closure of the Fremont factory for nearly half the quarter. The company's cash and cash equivalents increased by $535M to $8.6B. Operating margin reached 5.4% for the quarter.
Posted fourth sequential GAAP profit.
Generated positive free cash flow of $418M.
Increased cash and cash equivalents by $535M to $8.6B.
Operating margin reached 5.4%.
Revenue by Segment
Forward Guidance
Tesla has the capacity installed to exceed 500,000 vehicle deliveries this year, despite recent production interruptions. The company expects its operating margin will continue to grow over time. Model Y deliveries from Gigafactory Berlin and Gigafactory Shanghai are expected to start in 2021. Tesla Semi deliveries will also begin in 2021.
Positive Outlook
- Capacity installed to exceed 500,000 vehicle deliveries this year.
- Operating margin expected to continue to grow.
- Model Y deliveries from Gigafactory Berlin and Gigafactory Shanghai expected in 2021.
- Tesla Semi deliveries will also begin in 2021.
- Continuing to significantly invest in product roadmap.
Challenges Ahead
- Difficult to predict further operational interruptions.
- Difficult to predict how global consumer sentiment will evolve.
- Achieving 500,000 vehicle delivery goal has become more difficult.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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