Tesla Inc on Wednesday came posting quarterly profits at a time when some of major auto makers are reporting losses.
Though Tesla succeeded to post third-in-a-row quarterly profit but did not provide full year guidance saying it impossible to provide when deliveries are being hurt by novel coronavirus and lockdown orders.
Tesla’s pricing strategy in current quarter and rest of the year will be an important test for the electric car maker to decide how durable its performance is. By keeping its losses lesser or even remain making profits and better in competing with legacy automakers would help Tesla getting stronger position to grab the more of the business from rivals which they have been losing because of disruption created by the virus outbreak.
Tesla come clean in saying that at the moment it could not say anything about how much time it will be taking vehicle manufacturing and global supply chains in coming back to routine, but said it will share full-year guidance for cash flow and net income at the time of reporting results of current quarter.
In its previous forecast, Tesla has shred estimates of being delivering about 500,000 vehicles by the end of this year, but in Wednesday briefing it did not tell anything about that delivery forecast. However, company’s this January prediction of continue posting positive net income and positive cash flow came true, at least for the reported quarter.
The company was optimistic about gradually resuming productions at its facilities in Fremont, California and in Shanghai, China through second quarter.
At a time when vehicle manufacturing in the United States went through an almost halt in March, Tesla came up describing progress of its Shanghai plant as better-than-expected, with expectations of manufacturing 4,000 units per week of its Model 3 sedan, or 200,000 units per year by June this year.
For the first quarter, Tesla posted excluding-item profit of $1.24 per share while analysts were expecting it to be a loss of 36 cents per share.