Tesla Inc. (NASDAQ:TSLA) Reports Exception Q2 2020 With 90,650 Deliveries Amid COVID-19


In the last quarter, Tesla Inc. (NASDAQ:TSLA) delivered 90,650 vehicles despite the impact of the COVID-19 pandemic and partial shutdown of the Fremont factory in California.

Tesla tops vehicle delivery estimates in Q2

This is the second consecutive quarter the electric carmaker is delivering better than expected car deliveries with analysts having projected 72,000 deliveries during the period. In the 1Q of 2020, Tesla delivered 88,400 cars, but this was a drop from the 112,000 vehicles delivered in Q4 2019. The company stated that it delivered 80,050 units of Model Y and three vehicles, as well as 10,600 of Model S and X cars. Despite Fremont factory being partially shut during the quarter, the company stated that it succeeded in ramping production to previous levels.

Normally deliveries are a close estimate of the sales numbers Tesla reports with its numbers holding up considerably higher than those of competitors. The company’s sales dropped 4.8% from the same quarter a year ago as sales across the globe slumped in the quarter because of the impact of COVID-19. Fiat Chrysler, General Motors, Ford, and Toyota Motors all reported a plunge in sales in the quarter by over 30% as dealerships and factories remained closed due to COVID-19.

Musk defied public health officials to reopen Fremont factory

In an email, Tesla CEO lauded his employees for the exceptional execution considering the challenging times we are in. The CEO indicated that the automaker could break-even once it reports its Q2 financial results later this month. Shares of the company have surged to new highs, and following the announcement of the numbers, the company’s valuation edged past that of Japanese auto giant Toyota.

Musk has been critical about the measures taken to combat the spread of COVID-19 that affected operations at its main factory. The reopening of the Fremont factory was surrounded by controversy, with the CEO reopening public health officials’ defiance. He has faced local opposition in Texas, where he was to open a plant to manufacture the Cybertruck.