1st quarter 2020: Tesla makes surprising profits in pandemic

Amid the crisis, Telsa reports a quarterly profit, although analysts expected a loss. The share price rose about ten percent.

Last quarter, Tesla still managed to make a profit of $ 16 million. It’s Tesla’s profitable third quarter in a row. Tesla also ended the first quarter with a first-time profit. The first quarter of a year is traditionally considered weak for automakers.

Tesla has amassed $ 8.1 billion in cash reserves, which can now safely carry the company through the crisis. The main plant in California still can’t work, but Tesla is already working again in Shanghai and plans to build 4,000 cars a week in mid-2020.

The purchase price of the site on which the Brandenburg Tesla factory will be built was also transferred a few days ago. The environmental impact assessment and subsequent construction permit are still missing here. Tesla still plans to start shipping Model Y from the Grünheide plant in the second quarter of 2021. At this time, construction plans need to be reviewed and the construction application needs to be resubmitted, as some areas need a foundation for piles due to sandy soil.

However, Tesla is postponing its plans to deliver the electric truck in 2020 by one year to 2021. With this step, the Tesla Semi is two years behind the automaker’s previous delivery target. In addition, Tesla is reducing the price of the Model 3 Standard Range in China to compensate for the loss of purchase premiums there.