Tesla reports record revenue, profit doubles as auto deliveries surge

Cornelia Mascio
Ottobre 22, 2020

Revenue from July through September was $8.77 billion, a record that passed analysts' expectations of $6.3 billion, according to FactSet.

Shares of the Palo Alto, California, company rose 3.6 per cent in extended trading Wednesday.

The third-quarter profit was more than double the same period a year ago, when Tesla made $143 million. The company's market capitalization has ballooned to $394 billion as a result, surpassing Johnson & Johnson ($379 billion), Procter & Gamble ($357 billion), and JPMorgan Chase ($303 billion).

Tesla has defied a downward trend in the wider auto industry in 2020 and bucked a pandemic and economic upheaval with steady sales and profitable quarters, sending shares up around 400 percent this year.

"If it continues on this same path, it seems that Tesla will become a fairly mainstream automaker before the mid point of this decade", said Caldwell.

"With more EV launches on the horizon, Tesla has a big red target on its back", she said.

On Oct. 2, Tesla reported that it had delivered 139,000 SUVs and sedans from July through September, compared with 97,000 deliveries during the same period a year ago.

The electric auto maker also affirmed its target to deliver half a million vehicles by the end of this year, a goal that will require it to significantly ramp up vehicle sales in the fourth quarter. The company said hitting the target "has become more difficult" and depends on increases in production of the Model Y small SUV and at the company's plant in China. Tesla is adding Model Y production capacity at its Shanghai plant and is building new factories in Germany and near Austin, Texas. It also boosted vehicle deliveries by 44% to nearly 140,000, and generated free cash flow of $1.4 billion, marking fresh highs for the company on both fronts.

Tesla's stock price has skyrocketed more than 390% this year as of Wednesday's close.

Musk said Tesla is starting slowly in order to be safe, gathering data on rare traffic cases that can't be anticipated. "We need to train the system on this corner-case situation, look for examples". But that apparently won't happen.

Critics have said that Tesla doesn't have the proper sensors to safely release a full-self-driving vehicle.

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