Tesla, Inc. (NASDAQ: TSLA) stock jumped more than 6 percent Thursday, after the electric car manufacturer reported financial for the first quarter 2020. According to the report, Q1 2020 was the first time in Tesla’s history it has achieved a positive GAAP net income in the seasonally weak first quarter. Despite the global challenges, Tesla had the best first quarter in terms of production and deliveries.
Tesla reported $283 million GAAP operating income, 4.7% operating margin, $16 million GAAP net gross margin at Giga Shanghai approaching level of US-made Model 3. In addition, Model Y deliveries began ahead of schedule.
“We are absolutely continuing our Model Y capacity expansion at full speed at both Giga Berlin and Giga Shanghai and here in Fremont when they will let us continue,” Elon Musk, Tesla CEO, said during the analyst call.
The Company plans to offer Full Self-Driving (FSD) features as a subscription service, although the timing is still unclear. However, Musk highlighted makes more sense economically to buy the feature than to subscribe to it.
“I should say, it will still make sense to buy FSD as an option as in our view, buying FSD is an investment in the future. And we are confident that it is an investment that will pay off to the consumer – to the benefit of the consumer. In my opinion, buying FSD option is something people will not regret doing.”
Tesla’s automotive gross margin of 25.5% as well as total gross margin of 20.6% both reached their highest levels in 18 month.
21 Apr, 2020