Tesla's Q3 net profit surged 131%, and it has achieved profitability for five consecutive fiscal quarters
In the early morning of October 22, Tesla announced its third quarter 2020 financial report. With the global economy still in turmoil, Tesla’s earnings per share and revenue exceeded expectations, setting a record.
This is Tesla's five consecutive fiscal quarters to achieve profitability, which means that the company is expected to end the fate of consecutive years of losses and achieve full-year profit for the first time in 2020.
Specifically, Tesla’s total revenue in the third quarter was US$8.771 billion, an increase of 39% from US$6.303 billion in the same period last year, and a 45% increase from US$6.036 billion in the previous quarter.
At the same time, the net profit attributable to common shareholders was 331 million U.S. dollars, an increase of 131% from the 143 million U.S. dollars attributable to common shareholders in the same period last year, achieving five consecutive quarters of profit.
The outstanding performance is mainly attributed to the substantial increase in vehicle deliveries.
According to the delivery data released by Tesla, in the third quarter, the company's total output was 145,036 vehicles, and the total delivery volume reached 139593 vehicles, all setting new historical records. This also contributed to a 47% increase in Tesla's sales revenue from the previous quarter, reaching $7.6 billion, accounting for 87% of the total revenue in the third quarter.
In order to be able to enter the mass market from the niche market, boost investor confidence and become a well-known brand by consumers, mass production delivery has always been Tesla's most concern.
At Tesla's 2020 Annual General Meeting of Shareholders and "Battery Day" events held in September, Tesla CEO Elon Musk (Elon Musk) stated that vehicle deliveries in 2020 will increase by 30% to 40% over last year , Reaching between 477750 and 514500 vehicles.
This time, Tesla reiterated this goal. In the third quarter earnings conference call, Tesla Chief Financial Officer Zachary Kirkhorn (Zachary Kirkhorn) said that although the goal of delivering 500,000 electric vehicles in 2020 has become more difficult to achieve, it is still Is the company's goal.
Although Tesla closed its factories for a period of time due to the epidemic, production capacity was affected. However, this time the financial report mentioned that the production efficiency of Tesla vehicles is further pushing up.
At present, the total production capacity of the Fremont plant has reached 590,000 units per year. While adding a new production line, the world's largest die-casting equipment is used to upgrade the production and assembly of Model Y. In addition, the production capacity of the Shanghai plant has now increased to 250,000 units/year, and the plant is currently in three-shift production. Large-scale die-casting equipment has also been introduced on the Model Y production line.
It is worth mentioning that Tesla's third-quarter performance beyond expectations also benefited from the $397 million in revenue from the sale of carbon emission credits (which was included in the car sales revenue).
Carbon emission credits refer to carbon dioxide emission quotas. Car companies need to obtain credits by selling low-polluting electric vehicles to offset the emissions of high-polluting models they sell. The United States and the European Union have similar regulations.
In the first half of 2020, Tesla received a total of US$782 million from sales of carbon emissions. Zachary Kirkhorn predicts that the revenue from the sale of carbon credits this year will more than double that of last year.
So far, Tesla shares rose 3.25% in after-hours trading, to 436. The 37 Mei dollars. Since the beginning of this year, Tesla's stock price has increased approximately five times.
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