Tesla (TSLA) 1st Quarter Earnings

    On April 29, Tesla announced its performance report for the first quarter of 2020: it produced 103,000 vehicles (YOY + 33.1%) and delivered 88,400 vehicles (YOY + 33.1%) in the first quarter, significantly exceeding the previous market average forecast. sales forecast of 77,400 units. Revenue will exceed the same period last year ($4.54 billion) to $5.896 billion; it will return to a loss, and Tesla is expected to lose $210 million, or $0.18 per share.

    According to the news, the first stage of mass production Model 3 at Tesla's factory in Shanghai, China, has become the first overseas model of China's best-selling all-electric car. Follow-up Tesla will continue to expand the production scale at the Shanghai plant, including the Model Y assembly line. In addition, the new super factory in Berlin, Germany is expected to be completed and opened in 2021, and the production of Model 3 and Model Y will be the top priority. The 2019 Model 3 is also the best-selling electric car in Europe. Meanwhile, Tesla sold 2,415 Model 3s in South Korea, making the Model 3 the best-selling imported car in South Korea. Finally, Tesla's U.S. factories will reopen on May 4.

 

    Although revenue in the first quarter may be lower than expected, deliveries in the second quarter will recover as factories start, production ramps up, and plants begin to gradually resume work. In terms of ratings, Goldman Sachs gave Tesla a “buy” rating on April 15, with a target price of $864, which still has a 19% upside compared to the closing price of $725.15 on April 24.