Electronic autonomous vehicle (EAV) manufacturer Tesla is expected to release its 2020 second-quarter report on July 22nd, with higher delivery numbers forecasted as the period’s greatest driver.
In a report from website Yahoo! Finance, Zacks Equity Research gave the automaker company a Rank #3 (Hold) status. It cited the higher number of Model 3/Y deliveries made during the said period. This is a big part of the company’s overall delivery figures.
Good 1st Quarter Figures
In its last quarterly report, the company’s shares made earnings of $1.24 with revenue at $5.13 billion. The company had a capital increase of $2.3 billion which amounted to $8.1 billion as the reported end of March this year. It’s higher compared to what was reported by the end of 2019 with only just $6.3 billion.
By the end of the quarter, Tesla listed an overall delivery of 88,496 vehicles and the production of some 102,672 automobiles. This is an annual increase of 33% and 40% respectively. Production and delivery of the 3 and Y models have seen an annual jump of 39% and 50% respectively indicating a continued upward trend for those specific models.
Projected 2nd Quarter Performance
The Model 3, which boasted a set of impressive specifications and solid performance reviews, is the company’s flagship model and the bestselling car in North America and Europe. Even though the pandemic has raged over the globe, the company registered a slight decrease in production and deliveries of the model. This is mainly attributed to the temporary closure and seize of operations in the company’s main factory located in Fremont. The decrease in delivery figures is pegged at 4.8%.
Tesla’s Y model, on the other hand, had its schedules ahead of time with production started in January and deliveries began in May which helped in the company’s second-quarter figures. It posted a total number of 80,050 vehicles delivered compared to 76,200 deliveries made during the last quarter.
However, the Y model has faced a lot of issues with US consumers due to issues with its production defects ranging from paint and trim issues to a loose seatbelt.
In May, the company introduced price cuts to its product offerings, by around 6%, in North America. They slashed down $2,000 on its Model 3 sedan while $5,000 off on its Model S and X sport utility vehicles (SUVs). It has also done this in China during the same month.
Zacks, as quoted on the Yahoo! Finance report estimates the quarter’s sales figure to be $4.96 billion – a 21.82% year-over-year decrease.