The electric car manufacturer exceeds expectations – despite the corona crisis. The share continues to soar. Elon Musk announces the construction of a new plant.
Tesla has posted a profit for four quarters in a row for the first time in its history. On Wednesday after the stock market closed, the electric car maker reported a net profit of $ 104 million for the past three months, compared with a loss of $ 408 million a year ago. It is thus on the way to being profitable for the full year 2020, which it has not achieved in any year before.
The numbers were well above expectations, and the share price rose at times in after-hours trading by seven percent to $ 1,700. The price has roughly quadrupled since the beginning of the year. Tesla currently has a market capitalization of around $ 300 billion, making it the highest rated automaker in the world. Just a few weeks ago, the company took over this title from Japanese manufacturer Toyota, which is worth a little more than $ 200 billion and is now a huge deficit. Tesla has also left the German manufacturers Volkswagen, BMW and Daimler behind, which together have a market capitalization of almost 155 billion euros. Tesla’s current share price is also well above the $ 420 CEO Elon Musk put into play two years ago as a price in the event of a possible withdrawal from the stock market. He gave up these plans after a short time.
The fourth quarterly profit in a row is of greater importance for Tesla because the company fulfills a criterion for inclusion in the S&P 500 stock market index. The prospect of this has contributed to the price gains in the past few weeks.
Grünheide should be delivering cars next year
In the past quarter, Tesla delivered almost 91,000 cars. That was five percent less than last year, but given the Corona crisis, which paralyzed Tesla’s main plant in California for almost half of the quarter, that was better than originally expected by analysts. Musk has had a high-profile dispute with the district in which the plant is located because of the forced closure. He sued him and started up the production facility earlier than allowed, in the meantime he threatened to move out of California. When the last quarterly figures were presented in April, he called exit restrictions in the wake of the pandemic “fascist”.
Tesla was apparently able to compensate for the production interruptions in America in part with its plant in Shanghai, which only opened at the end of 2019. The company is currently preparing the construction of a new car and battery plant in Grünheide, Brandenburg, and, according to information on Wednesday, is still on track to be able to deliver cars from there next year. The “Model Y” is to be manufactured in Germany, Tesla’s latest model, which came onto the market just a few months ago. The company also plans to build another plant in the United States and has now announced in its quarterly report that it has selected Austin, Texas, as its location.
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Adjusted earnings per share for the second quarter were $ 2.18, well above analysts’ forecasts, who had reckoned an average of 3 cents. Emission points that the company receives from governments for the production of electric cars and can resell to other manufacturers may have contributed to profitability. That took Tesla in $ 428 million, up from $ 111 million a year ago.
The company itself, however, attributed its higher earnings to “fundamental operational improvements”. Additional costs related to the factory closure were offset by savings elsewhere. Looking at the year as a whole, Tesla is sticking to its goal of delivering a total of 500,000 cars, but admitted that this project has become more difficult.