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Tesla Announces Fifth Consecutive Quarter Of Profits

by : Hannah Smith on : 22 Oct 2020 13:54
Tesla Announces Fifth Consecutive Quarter Of ProfitsPA Images

It’s fair to say it’s been a pretty terrible year for the economy in general, but there’s one company that continues to buck the trend.

Tesla reported its latest earnings on Wednesday evening, announcing its fifth consecutive quarter of profits with figures comfortably beating analyst’s expectations for the company.

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Elon Musk’s company generated $8.77 billion in revenue, with a net profit of $331 million. The third quarter profit means Tesla is just three months away from netting its first ever annual profit in what would be yet another a landmark for the company.

The electric car giant is on a roll right now, and this news comes hot on the heels of an earlier record sales announcement from the company.

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Earlier this month, Tesla revealed it had delivered 139,300 vehicles during the most recent quarter, which runs from July through to the end of September. That’s a solid 27,300 more than its previous benchmark, set at the end of last year.

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Revenue for those sales accounted for the vast majority of Tesla’s earnings – 91% of the third quarter total. Following the announcement, Tesla stock rose by 3% after markets closed on Wednesday.

Predications made by analysts had been slightly more conservative, with the profit announcement having come at the end of a quarter in which Tesla’s operating expenses reportedly increased by a third, with the company recently beginning work on two major new Gigafactories in Austin, Texas and Brandenburg, Germany.

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In an earnings call with shareholders, Musk confirmed a number of Tesla’s future plans, including a new robotaxi-focused arm of the company, and plans to hit target of delivering 20 million vehicles per year by 2030.

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According to Barron’s, he said:

I’m not saying for sure we’ll hit 20 million vehicles. But it does seem like a good goal to have because that would mean that we’re replacing 1% of the global fleet per year,

It’s difficult to say that [we are] really changing the world if we’re not switching out 1% of the global fossil-fuel vehicles.

Musk also gave an update on the Cybertruck, claiming that ‘if things go well’ some of the reported quarter of a million people who rushed to pre-order the truck when it was first announced last year could receive the model by the end of 2021.

The news comes a few days after Elon Musk announced that Tesla was slashing the price of its Model S line to $69,420 – get it?

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Topics: Technology, Elon Musk, finance, Now, Tech, Tesla