Tesla are reporting second-quarter net income of USD $104m, marking their first string of four consecutive quarterly profits in spite of the ongoing coronavirus pandemic.
Tesla delivered 91,000 vehicles in the quarter, down 5% from the same period a year ago. “Our business has shown strong resilience during these unprecedented times,” Tesla said in a statement. “We believe the progress we made in the first half of this year has positioned us for a successful second half of 2020. Production output of our existing facilities continues to improve to meet demand, and we are adding more capacity. Later this year, we will be building three factories on three continents simultaneously.”
Earnings were also aided by lower operating costs due to a temporary reduction in employee compensation as well as deferred revenue recognition related to a future self-driving system.
The site for Tesla’s new factory outside of Austin, Texas will be open to the public and will be an “ecological paradise”, according to CEO Elon Musk. The plant will build Tesla’s Cybertruck pickup, semi truck, Model Y crossover and Model 3 sedan. Musk said the company will continue to improve their production systems—an area of weakness in the past, particularly when they began building the Model 3. “There’s far more opportunity for innovation in manufacturing than the product itself”, Musk said. “The long-term sustainable advantage of Tesla, I think, will be manufacturing”.