Economy & Politics

US electric car maker Tesla with fifth quarterly profit in a row

Tech billionaire Elon Musk can look forward to fifth consecutive quarterly profit. Photo: AFP / BRENDAN SMIALOWSKI

Elon Musk is allowed to celebrate: On the stock exchange, the electric car pioneer Tesla has been the world’s most valuable car maker for some time, but now the success is increasingly reflected in the quarterly figures.

Palo Alto – The US electric car manufacturer Tesla was in the black in a row in the fifth quarter and confirmed its ambitious annual targets. In the three months to the end of September a net profit of 331 million dollars (279 million euros) was achieved, as the company of the dazzling tech billionaire Elon Musk announced on Wednesday (local time) in Palo Alto, California. Tesla increased its earnings year-on-year by a whopping 131 percent.

Sales grew 39 percent to $ 8.8 billion, a new record. Tesla clearly exceeded expectations, the stock reacted after the hours with a significant price increase. With the surprisingly strong quarterly figures, Tesla is expanding its series of successes – since it was founded in 2003, the company has never been profitable over such a long period of time.

Almost 320,000 cars sold to customers

The company also affirmed that it is sticking to its ambitious plan to deliver half a million vehicles this year, despite the stress of the Corona crisis. In the first three quarters, almost 320,000 cars were sold to customers, 139,593 of them in the past quarter. Achieving the annual target of 500,000 deliveries, however, has become more difficult, admitted Tesla in the annual report with a view to the pandemic.

On the stock exchange, Tesla has been the world’s most valuable carmaker for some time. Since the beginning of the year, the share price has risen by a good 400 percent, in the past twelve months by almost 730 percent. Most recently, Tesla’s market value was $ 394 billion. This means that the e-car pioneer from Silicon Valley is trading more than three times as high as the two largest US manufacturers, General Motors and Ford combined in terms of market shares, despite much lower sales figures. Tesla is also miles ahead of the German car companies in terms of market value.

Written deep red numbers for years

For Tesla’s CEO Musk, who also runs the SpaceX rocket company and many other projects, the soaring is a triumph. For years, his company was in the red, the future seemed uncertain. Now Tesla even delivered a record in operating profit – although the car market as a whole is groaning considerably from the Corona crisis. “The third quarter was the best in our history,” said Musk after the presentation of the financial report in a conference switch with financial analysts.

Meanwhile, Tesla is continuing to vigorously drive its international expansion; production at the Chinese plant in Shanghai is to be ramped up quickly. In addition, the construction of the first European factory in Grünheide near Berlin is progressing rapidly. Tesla plans to produce and deliver the first cars here as early as next year. In addition, the group wants to quickly pull up another US car plant in Austin, Texas, where the compact SUV Model Y and the planned cybertruck will roll off the assembly line.

In Germany, Tesla is also expanding its presence by joining the new auto supplier ATW. After purchasing the Grohmann company in 2016, the Californians are now participating in the second Rhineland-Palatinate company. Tesla has now received the green light from the Federal Cartel Office, as a spokesman for the authority announced. ATW belonged to the Canadian manufacturer ATS Automation Tooling Systems, which wanted to close the location in Rhineland-Palatinate. Tesla saves jobs at the company with around 210 employees, which BMW, Daimler and VW counts among its customers.


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