Tesla Shares Jump Nearly 10% After Earnings Despite COVID

In a total gangbuster move, Tesla has announced surprising earnings and production levels this quarter, despite the global pandemic and economic turmoil devastating their competitors. The company stated that they are at a level of production capacity to exceed half a million deliveries this year, which was what they estimated before Covid-19 interrupted production in their factories in late March. This comes along with the announcement of $5.985 billion in revenue last quarter.

In Q1, we reached our highest ever revenue for a seasonally slower first quarter as our total revenue grew 32% [year over year]… Sequentially, our revenue was mainly impacted by lower deliveries, driven primarily by limitations on our ability to deliver vehicles towards the end of the quarter.

Tesla’s Q1 gross margin was 25.5%, which is 2.7% higher than last year’s. Aided by, the introduction of the Model Y last quarter, it was the first time one of their models was profitable immediately upon release. Between it and Tesla’s other cars, a whopping 88,600 vehicles were delivered.

Due to ramp downs in production, that level isn’t as high as Tesla’s record Q4 of 2019, but still helped the company to make a profit of $0.09 a share, beating expectations. Based on this news, the stock rose to over $872 a share after hours (at the time of writing). The company has seen the best 2020 stock performance of any firm on the Nasdaq 100, rising over 100% YTD if the gains hold until market open Thursday.

For CEO Elon Musk, this news means an even bigger bump in his upcoming payday. As the first of 12 option tranches approach, he will be able to buy 1.69 million shares at a price of $350.02 each. Some quick napkin math puts the profit on that at around $882 million.

It’s not all good news however, the company did say the Tesla Semi deliveries will be postponed until 2021.

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