Tesla Q2 2020 earnings: The company isn’t backing down from being profitable

Tesla slightly upped its automotive revenue in its second quarter of 2020 compared to last quarter, with a total profit of $6.036 billion USD (roughly, $8.09 billion CAD).

This small growth amid the uncertainty of the Coronavirus pandemic was bolstered by growth in the company’s automotive sector, which grew one percent this quarter to $5.179 billion USD ($6.946 billion CAD). While this is growth compared to Q1 2020, it’s a  four percent drop compared to last year’s Q2.

While these results aren’t groundbreaking, they do show a much more stable company than we’ve seen from Tesla in other years.

Telsa says that “the positive impact of higher vehicle deliveries, higher regulatory credit revenue and
higher energy generation and storage revenue was somewhat offset by lower vehicle average selling price (ASP) and lower services and other revenue.” However, the fact that it’s able to make more revenue off its side projects like solar energy generation and storage is likely a reassuring fallback for the automaker.

Beyond the finances, Tesla also rehashed its delivery and production numbers from early July. However, looking at both of these stats compared to the same quarter in 2019, the automaker is making and selling fewer cars. It’s hard to lay blame on Tesla for this though, due to the circumstances the world has been through this year.

Last year in Q2, Tesla built a total of 87,048 cars. This quarter it only created 82,272. It also delivered roughly 5,000 more cars this time last year than it has in 2020.

Back to the company’s solar and energy storage businesses. The press release mentions that this is the first quarter where Powerwall and Megapack, the company’s two storage solutions, began getting profitable. The release goes on to say that solar installations have tripled compared to last quarter, but there’s no mention of that division making a profit.

At the end of the release, Tesla mentions that its vehicle production is back to normal, and it can exceed 500,000 deliveries this year and that number continues to be the company’s goal regardless of the COVID-19 slowdowns.

You can find the whole investor breakdown here. 

Source: Tesla

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