Tesla (TSLA) Posts Surprise Profit In Q1 2020 Earnings With $1.24 EPS, $5.9B Revenue [Live Updates]

by Ma. Claribelle Deveza April 29, 2020

Tesla-TSLA-Earnings-Call-Q1-2020

Tesla (NASDAQ:TSLA) reported an EPS of US$1.24 and a US$5.9 billion revenue for Q1 202020, surpassing Wall Street's estimates by a little bit. After TSLA trading officially closed on April 29, Tesla released its Shareholder Letter before its Q1 2020 Earnings call.

Highlights 

  • Tesla Q1 Total Deliveries Up 40% YoY
  • Tesla 1Q Automotive Gross Margin 25.5%
  • Tesla reached 1,000 Solar Roof production in a single week, exceeding 4MW
  • In Q1, Tesla installed its 100,000th Powerwall.
  • Production of Model Y in Fremont, California, Model 3 In Shanghai, China continuing to ramp 'gradually' through Q2
  • Tesla believes Shanghai Model 3 production rate will reach about 4,000 per week by mid-2020
  • Tesla will shift first Tesla Semi deliveries to 2021
  • We will achieve industry-leading operating margins and profitability with capacity expansion and localization plans underway."
  • Tesla 1Q energy generation and storage revenue was $293M
  • Giga Shanghai Phase 2 hold Model Y production
  • Giga Shanghai 1.5 is a battery module and battery pack factory
  • Tesla about to break ground in Giga Berlin
  • Giga Berlin still on schedule for Model Y production in 2021
  • "We have the capacity installed to exceed 500,000 vehicle deliveries this year, despite announced production interruptions. For our US factories, it remains uncertain how quickly we and our suppliers will be able to ramp production after resuming operations. We are coordinating closely with each supplier and associated government"

    Tesla's full Shareholder Letter:

    Q1 2020 Update by Claire Dev on Scribd

    Q1 2020 Predictions and Analyst Estimates

     Before TSLA's first-quarter Earnings Call for this year, Wall Street estimated that the EV automaker would report a US$5.8 billion revenue with a per-share loss of 18 cents. The Street also thought Tesla would report an operating loss of -US$135 million. As for Tesla's 500,000+ delivery guidance for 2020, Wall Street analyst Dan Ives said it was "a virtual impossibility."

    Gali Russell from HyperChange shared similar estimates. He believed Tesla would make US$5.7 billion in revenue with an operating loss of -US$270 million. Russell remained positive about Tesla's guidance but admitted it would be difficult to reach if Fremont factory reopened in June. 

    Russell reminded the public that his estimates, as well as Wall Street's, were not set in stone. Neither Russell nor Wall Street analysts could 100% predict the information Tesla had revealed during its latest Earnings Call. The cautious TSLA bull also noted that for long term investors, a single quarter's results were not as significant as the company's far-reaching projections. 

    As of this writing, a few analysts are confident that Tesla will survive--and maybe even thrive--after this pandemic. ARK Invest strongly believes that Tesla has the necessary components to live through this global crisis. Gene Munster from Loup Ventures also seemed confident about TSLA's future. He named Tesla as one of the "winners" of Q1 2020. 

    Featured Image Credit: elonmusknews/Instagram

    Legal Disclaimer --

    This article is for informational purposes only. You should not construe any such information or other material as an investment, financial, or other advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, or offer by Ma. Claribelle Deveza, Tesmanian, or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.

    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.




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