Tesla Q3 Revenues Jump 39% as Strong Demand for it’s Products Continue

Tesla posted its Q3 2020 earnings report after the bell Wednesday, and hosted its Q3 earnings call later at 2:30pm PST. Revenues are up 39% YoY to $8.77 billion compared to same quarter last year of $6.3 billion, and posted a $331 million GAAP profit, its 5th consecutive profitable quarter. Tesla now has $14.5 billion in cash, the most in its history, gross margins on all its products remain strong and continue to improve.

Key takeaways:

• 850k current production capacity.
• 500k 2020 year end target still on track.
• Model Y production to begin in 2021 from Shanghai, Texas, Berlin.
• 4680 battery cells will be produced in Berlin for Model Y ramp up.

• Fremont will help produce 4680’s for Berlin in early stages if needed.
• Biggest profitable quarter ever, biggest revenue quarter ever.
• FSD going smooth, robo-taxi fleet is main focus, not human ride sharing.
• Solar Roof install down to 1-2 days, biggest constraint is hiring and training roofers, 2021 is expected to be a big year for Solar Roof.
• Solar panel installs doubled YoY.
• Record battery storage deployed, 759 MWh, backlogged to end of 2023.
• 2021 ball park vehicle deliveries should be between 800,000-1,000,000.
• It was reiterated that the energy business should be as large as auto business one day; auto-bidder software allows revenues long after battery sale.
• “Cybertruck; some deliveries in 2021, many in 2022.” -Elon Musk
• Semi; battery constraints holding mass production back, 4680 cells are trying to solve this problem.
• “Tesla insurance should be 40% of the automotive revenue one day, it’s better and cheaper.” -Elon Musk

Conclusion

This was amazing quarterly earnings report, and the earnings call gave a lot of good insight as what is to come for Tesla in the next 6-24 months. Every aspect of their business is growing; the demand for Tesla’s products is just at the early stages: Tesla is an efficient machine. “Tesla builds the machine that builds the machine that builds the machine.” -Elon Musk. Tesla essentially has over 12 startups inside it, and is an order of magnitude roughly more vertically integrated than standard OEMs. Tesla is more on track than ever to accomplishing its mission; to accelerate the world’s transition to sustainable energy; a mission the whole world is getting on board with.