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Tesla beat earnings expectations for the pandemic-impacted second quarter, reporting $6.04 billion in revenue versus analyst projections of $5.37 billion.
Highlights from the quarterly report include:
Tesla said its business showed “strong resilience” during these unprecedented times. Despite the closure of its main factory in Fremont for nearly half the quarter, the company posted its fourth sequential GAAP profit in Q2 2020, while generating positive free cash flow of $418M.
In the second quarter, Tesla produced over 82,000 vehicles and delivered approximately 90,650 vehicles.
“Our profit improved sequentially due to fundamental operational improvements,” Tesla said in the report. “Additionally, we experienced costs associated with factory shutdowns, which were offset by actions taken during the quarter to reduce expenses. For the trailing 12 months, our GAAP operating margin reached nearly 5%. We expect our operating margin will continue to grow over time, ultimately reaching industry-leading levels.”
Tesla said that although it has successfully ramped vehicle production back to prior levels, it remains difficult to predict whether there will be further operational interruptions or how global consumer sentiment will evolve in the second half of the year.
The company also expects to exceed 500,000 vehicle deliveries this year, despite recent production interruptions.
“While achieving this goal has become more difficult, delivering half a million vehicles in 2020 remains our target,” the report said.