Tesla – Quarterly profit, Musk beats the lockdown

The Tesla for Elon Musk doesn’t pay for the consequences of the pandemic coronavirus: the second quarter, despite the suspension of the activities of the plant in Fremont, from 23 march to 11 may, was, in fact, ended with a surprisingly useful budget.

Profits. The californian company has, in particular, recorded quarterly profits for $ 104 million, versus a loss of € 408 million in the same period of last year. The earnings per share, adjusted by extraordinary items such as compensation programs shareholder of the management, amounted to 2,18 dollars, decided improvement with respect to the 1,12 dollars lost a year ago, and especially compared to the forecast of the market. Analysts expected a quarterly loss of 2 cents per share.

Revenues. Until a few weeks ago there was a red well wider, but the Tesla has pushed analysts to revise the estimates, with the performance much better then the expectations on the front of the delivery. The revenue have proved to be above expectations, although in slight decrease: in the quarter were down approximately 5% compared to last year, reaching 6,04 billion dollars, well beyond the 5.15 billion of market expectations. The california Home, in overcoming the worst consequences of the lockdown, it has also managed not to burn the cash: despite the closure of the Fremont, and the decision to pay the 10 thousand employees, even during the lockout, the Tesla has generated flows for 418 million dollars and improved its financial position, which now shows a surplus of $ 8.6 billion.

The green credits. A contribution . perhaps decisive – to the accounts came from the sale to other producers green certificates, which in the quarter amounted to $ 428 million, up from 111 million a year ago. In the first six months of the year, Tesla has already received 782 million, pushing the financial director Zach Kirkhorn to estimate the possibility of closing the 2020 with double the income compared to the 594 million of credits sold last year. Other factors have helped the profit and loss account: the lock-out of Fremont has, for example, reduced operating costs, while lower activities have enabled them to reduce the costs of research and development.

The forecast. The vertices of the Tesla you are unbalanced on the trend of the next few months, choosing the path of caution: “it Remains difficult to estimate any additional stop operating,” reads the report, “or predict the evolution of the global sentiment of consumers”. Musk then launched a warning: demand for the models, the Tesla is there and is not a problem, but the company is encountering difficulties in managing part of the supply chain. These difficulties may complicate the path to reach the goal of over 500 thousand deliveries set for 2020, but also on this subject the House is not unbalanced.

The reaction of the Stock exchange. To overreach, however, was once again the stock market: in the bargaining after-hours on Wall Street the shares of the Fremont have earned over 4%, closing at share 1.657 dollars. Investors have enjoyed a not-so-positive results and over the expectations, as the fact that the Tesla, for the first time in its 17 years of life, has experienced four quarters in a row in profit. This is an important milestone for the californian company, because it increases the possibility that the actions to be included within the S&P 500 index. In the case of inclusion, the title Tesla could receive a further boost to the upside due to the possible interest of those large funds and investors that base their investment choices on the basis of the performance of one of the three major equity indexes on Wall Street. The series of quarterly earnings, the eyes of the market, also launches an important signal to the automotive sector: you can earn with the electrical even after you have traveled a long road and difficult. Since 2003 the company has lost more than $ 6.8 billion, and most times it was one step away from financial collapse, but since last year, after having resolved various production problems and due to the frequent market support to the various capital increases or bond issues, the situation is completely changed. The route was reversed before the Model 3, the vehicle is intended to democratise the electric in the auspices of Musk, and then from the opening of the factory in Shanghai.

Source: Quattroruote.en – Edited by Anthon K.