Tesla sets revenue record, makes profit thanks to pollution credit sales to rivals
- The electric car maker also affirmed its target to deliver half a million vehicles by the end of this year
- With recovery in the US sluggish and Europe struggling with a second bout of the virus outbreak, some analysts have pinned their hopes on growth in China
Tesla on Wednesday reported its fifth consecutive quarterly profit on record revenue of US$8.8 billion, boosted by an uptick in vehicle deliveries and sales of environmental regulatory credits to other carmakers.
The electric car maker also affirmed its target to deliver half a million vehicles by the end of this year, a goal that will require it to significantly ramp up vehicle sales in the fourth quarter.
The shares rose 2.5 per cent to US$433.88 in extended trade as the carmaker beat analysts’ estimates. Tesla said it had the capacity installed to produce and deliver 500,000 vehicles this year, but added that achieving its goal has become more difficult.
“Achieving this target depends primarily on quarter over quarter increases in Model Y and Shanghai production,” the company said.
Asked by an analyst during a conference call whether Tesla aimed to deliver 840,000 to 1 million vehicles next year, based on its factories’ current maximum capacity, Chief Executive Officer Elon Musk responded the target was “in that vicinity,” while another Tesla executive said the company would provide guidance next quarter.
Tesla has defied a downward trend in the wider auto industry in 2020 and bucked a pandemic and economic upheaval with steady sales and profitable quarters, sending shares up around 400 per cent this year.