Tesla (NASDAQ: TSLA) may surprise everyone with its Q2 2020 results. At the beginning of the quarter, TSLA’s outlook seemed bleak. The Fremont Factory was still closed, preventing the company from producing the Models S, 3, X, and its latest vehicle, the Model Y. Tesla supporters were eager to see the company ramp Model Y production and deliveries, but the pandemic hindered such from happening.
However, Tesla was eventually able to reopen the Fremont Factory and resume operations despite some resistance. Since the reopening of its main facility, Tesla has been working hard to make up for lost time, making the second quarter a little less bleak and a bit more optimistic.
Tesla Fremont Gets Green Light From The County To Reopen The Factory https://t.co/ELnVnRUbYu— Tesmanian.com (@Tesmanian_com) May 18, 2020
Once again, Tesla Giga Shanghai is in an excellent position to boost Q2 2020 deliveries. The China-based factory contributed significantly to Tesla’s delivery numbers in Q1 2020.
In April, Tesla Giga Shanghai deliveries dropped from the previous month to 3,645. However, local Chinese media reported that Giga Shanghai might have received nearly 15,000 orders for its MIC Model 3 vehicles in the following months. According to local reports, MIC Model 3 SR+ deliveries were down in April because Giga Shanghai started producing the Long Range RWD variant and a government incentive for EVs was rolling out in May.
In May, Tesla experience centers reported increased demand for the locally-made Model 3 with orders exceeding 1,000 per day. Before the end of the month, Giga Shanghai started MIC Model 3 Long Range RWD deliveries, which bodes well for June and the end of the quarter.
Meanwhile, in Tesla’s own backyard, there may have been another quarter-end push. Tesla Model Y deliveries have been reported in the East Coast, Florida, and states near California. Tesla also started Model Y deliveries in Canada.
Of course, the MIC Model 3 variants and Fremont-made Model Y aren’t the only vehicles Tesla has delivered over the quarter. There seemed to be solid demand for the imported Models S, 3, and X in Europe, China, and the rest of the Asia Pacific region as well.
In the US, Tesla announced new prices for the Model S, 3, and X that may have boosted delivery numbers. There may have been a slight uptick in Model S sales, too, after it was dubbed the first electric vehicle in the world to reach an EPA range above 400 miles.
Tesla supporter, @TroyTeslike, shared his Tesla delivery estimates recently (as seen below). His calculations have proven to be close to Tesla’s actual numbers in the past. The estimates @TroyTeslike shared seem to support the information mentioned above.
Hi everybody. My Tesla delivery estimate for Q2 2020 is now 85,000 units.— TroyTeslike (@TroyTeslike) June 19, 2020
The next update will be on 30 June unless the calculation changes dramatically before that. pic.twitter.com/D1EDjxohPu
Take note, however, that Q2 2020 results will not solely depend on delivery numbers. Based on Tesla’s performance this quarter, however, that may be good news. The company has been able to focus on key factors that could boost the second quarter even further.
For instance, Tesla's released some features to its Full Self-Driving (FSD) suite in Q2, which may allow TSLA to include some FSD revenue into its income statements. Tesla Energy appears to be working hard in the background as well. Overall, TSLA started the quarter in a seemingly less than favorable position but seems to have turned it around.
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Ma. Claribelle Deveza holds zero share of Tesla, Inc., and currently (at the time of this article's publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.
About the Author
Ma. Claribelle Deveza
Longtime writer and news/book editor. Writing about Tesla allows me to contribute something good to the world, while doing something I love.