Tesla revealed its earnings and it was much better than expected. The company is planning to reach a record of delivering half a million vehicles in 2020, which is a target in the middle of a pandemic that damaged many businesses.
As a result, Tesla shares witnessed a 4% rise adding to its accumulative increase of 400% so far since the beginning of 2020.
- Q3 Revenue: $8.77 billion (the expected number was $8.26 billion)
- Q3 Adjusted earnings per share: 76 cents (the expected number was 55 cents)
Before the earnings season, Tesla already announced that more than 139,000 vehicles had been delivered in 3 months till September. This number already means a 40% increase in comparison to last year’s number. Investors will follow the company news closely to see if Tesla can keep its promise, i.e. 180,000 vehicles in the last quarter. Based on this, the company once again reaffirmed that the capacity is 500,000 vehicles for this year.
Tesla added: “While achieving this goal has become more difficult, delivering half a million vehicles in 2020 remains our target. Achieving this target depends primarily on a quarter-over-quarter increase in Model Y and Shanghai production, as well as further improvements in logistics and delivery efficiency at higher volume levels.”
Earlier this year, Tesla opened its second overseas factory in Berlin. The Berlin branch is working on increasing the production speed significantly and will become fully operational by mid-2021.
Weeks after the major Battery Day event, Elon Musk, the CEO, introduced a plan for the company to start producing its own “tabless” batteries to make Tesla cars go more miles and have a higher power, and eventually, to enable the company to produce $25,000 vehicles.