NASDAQ$TSLA

Tesla Motors, Inc. · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Tesla posted its fourth sequential GAAP profit and generated positive free cash flow despite factory shutdowns.

Tesla reported a GAAP profit for the fourth consecutive quarter and positive free cash flow of $418M despite the closure of the Fremont factory for nearly half the quarter. The company's cash and cash equivalents increased by $535M to $8.6B. Operating margin reached 5.4% for the quarter.

  • Posted fourth sequential GAAP profit.
  • Generated positive free cash flow of $418M.
  • Increased cash and cash equivalents by $535M to $8.6B.
  • Operating margin reached 5.4%.

Headline financials

Total Revenue

$6.04B

Previous: $6.35B-4.9%
EPS (adj)

$0.15

Previous: -$0.07+314.3%
Gross Margin

21.0%

No prior period
Operating Margin

5.4%

Previous: -2.6%+307.7%
Capital Expenditures

-$1B

Previous: -$530M-89.0%
Free Cash Flow

-$897M

Previous: -$938M+4.4%
Net Income

$104M

Previous: -$408M+125.5%
Operating Income

$327M

Previous: -$167M+295.3%
Gross Profit

$1.27B

Previous: $921M+37.6%
Cash & Equivalents

$8.62B

Previous: $4.95B+73.9%
Total Assets

$38.1B

Previous: $31.9B+19.6%
Stock-Based Comp

$347M

Previous: $210M+65.0%

Revenue & EPS history

Tesla · Revenue · Quarterly

$6.04B

Q2 2020-4.9%vs Q2 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Tesla · $6.46B total across 5 segments · Q2 2020

  • Automotive Sales
    $4.91B
  • Services & Other
    $487M
  • Regulatory Credits
    $428M+285.6%
  • Energy & Storage
    $370M
  • Automotive Leasing
    $268M

Forward guidance

Tesla has the capacity installed to exceed 500,000 vehicle deliveries this year, despite recent production interruptions. The company expects its operating margin will continue to grow over time. Model Y deliveries from Gigafactory Berlin and Gigafactory Shanghai are expected to start in 2021. Tesla Semi deliveries will also begin in 2021.

Tailwinds

  • Capacity installed to exceed 500,000 vehicle deliveries this year.
  • Operating margin expected to continue to grow.
  • Model Y deliveries from Gigafactory Berlin and Gigafactory Shanghai expected in 2021.
  • Tesla Semi deliveries will also begin in 2021.
  • Continuing to significantly invest in product roadmap.

Headwinds

  • Difficult to predict further operational interruptions.
  • Difficult to predict how global consumer sentiment will evolve.
  • Achieving 500,000 vehicle delivery goal has become more difficult.
  • Uncertainties in future macroeconomic and regulatory conditions arising from the current global pandemic.
  • Risk of delays in the manufacture, production, delivery and/or completion of vehicles and energy products and product features.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.1%

Avg return

Earnings day

+2.3%

Avg return

5 days after

+2.5%

Avg return

30 days after

56%

36 / 64 earnings

Positive

+25.1%

Q1 2013

Best reaction

-14.1%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025-5.9%-3.0%+10.0%
Q1 2026+0.5%-3.0%+10.0%
Q3 2025+3.6%+4.9%-10.9%
Q2 2025-8.2%-3.4%+2.2%
Q1 2025+5.4%+20.1%+42.6%
Q4 2024+2.9%+0.8%-24.7%
Q3 2024+19.5%+20.4%+61.7%
Q2 2024-14.1%-12.6%-16.2%
Q1 2024+14.1%+18.5%+22.3%
Q4 2023-12.7%-8.7%-8.2%
Q3 2023-13.6%-16.8%-8.1%
Q2 2023-10.4%-8.3%-26.5%
Q1 2023-11.6%-11.8%-2.3%
Q4 2022+11.4%+15.8%+36.8%
Q3 2022-5.9%-4.1%-18.2%
Q2 2022+10.7%+9.3%+20.8%
Q1 2022-1.9%-2.9%-35.4%
Q4 2021-9.7%+2.0%-11.8%
Q3 2021+3.4%+18.6%+31.6%
Q2 2021+0.2%+6.8%+10.5%
Q1 2021-3.4%-2.7%-15.1%
Q4 2020-5.4%-4.9%-23.5%
Q3 2020+0.9%-0.4%+16.0%
Q2 2020-3.5%-1.8%+30.7%
Q1 2020+1.7%-1.0%+8.6%
Q4 2019+13.0%+37.6%+17.8%
Q3 2019+17.3%+28.2%+30.3%
Q2 2019-12.1%-9.4%-18.7%
Q1 2019-6.1%-8.5%-27.8%
Q4 2018+3.2%+5.2%-0.9%
Q3 2018+7.0%+13.8%+10.8%
Q2 2018+17.2%+14.7%+1.2%
Q1 2018-5.2%+1.0%-2.7%
Q4 2017-5.6%-5.5%-2.0%
Q3 2017-9.7%-8.7%-7.5%
Q2 2017+8.6%+11.1%+11.2%
Q1 2017-7.3%-3.7%+6.6%
Q4 2016-7.7%-11.2%-5.1%
Q3 2016+0.8%-2.3%-2.8%
Q2 2016+1.5%-0.5%-12.9%
Q1 2016-9.0%
Q4 2015+1.5%
Q3 2015+8.4%
Q2 2015-7.5%
Q1 2015+1.7%
Q4 2014-6.2%
Q3 2014+0.9%
Q2 2014+1.9%
Q1 2014-13.8%
Q4 2013+3.1%
Q3 2013-13.7%
Q2 2013+7.9%
Q1 2013+25.1%
Q4 2012+2.0%
Q3 2012+0.5%
Q2 2012+4.0%
Q1 2012-1.6%
Q4 2011-1.6%
Q3 2011+0.9%
Q2 2011+3.6%
Q1 2011-3.8%
Q4 2010+3.7%
Q3 2010+9.6%
Q2 2010+6.8%
Q1 2010

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