Tesla (TSLA) releases third quarter 2020 results: destroys both revenue and profit guidance


Tesla (TSLA) released its financial results and letter to shareholders for the third quarter of 2020 after the market closed today.We’re updating this article with full details of the financial results, letter to shareholders and conference call later tonight. Refresh for the latest information.

As we reported in our third quarter earnings snapshot yesterday, the market had high expectations for Tesla this quarter after the company confirmed record shipments earlier this month.

Wall Street expected sales of about $ 8.2 billion for the quarter and a gain of $ 0.55 per share.

Tesla managed to destroy expectations with $ 8.7 billion in revenue and a gain of $ 0.76 per share (non-GAAP).

The market appreciated the beating of Tesla’s expectations with a 4% jump in after-hours trading thanks to $ 800 million in profit this quarter.

Tesla reported in the letter to shareholders:

“The third quarter of 2020 has been a record quarter on many levels. Over the past four quarters, we have generated more than $ 1.9 billion in free cash flow while spending $ 2.4 billion on new production capacity, service centers, boost locations and other capital investments . While we took additional SBC charges in the third quarter, our GAAP operating margin reached 9.2% ”

The automaker ended the quarter with a new record $ 14.5 billion in cash in the bank.

With these third quarter results, Tesla has now achieved an operating margin of 6.3% over last year:

“For the last 12 months, we achieved an operating margin of 6.3%. We expect our operating margin to continue to grow over time, ultimately reaching peak levels thanks to ongoing capacity expansion and localization plans.

Here is the summary of Tesla’s financial results for the third quarter of 2020:

Here we’ll be posting our follow-up articles on Revenue and Conference Calling to expand on the most important points (refresh the page to see the most recent articles):

Here is the letter and presentation to Tesla shareholders for Q3 2020 in full:

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