Tesla: Delivering half a million vehicles in 2020 remains our target.

Tesla announced that during the second quarter of 2020, its global electric car deliveries decreased by 5% year-over-year to 90,891 (in line with preliminary numbers). Production was down also by 5% year-over-year to 82,272.

The results are very strong, better than expected taking into consideration how challenging Q2 2020 actually was, with the main factory in Fremont, California closed for nearly half the quarter.

Additionally, the financial results were positive - net income of $104 million (GAAP).

Tesla Model S/X/3/Y Deliveries (quarterly) – through Q2 2020

Despite the temporary lockdown in the U.S., Q2 2020 was one of the best second quarters, as the Tesla Gigafactory 3 in China continued operation at full speed.

  • Total: 90,891 (down 5% year-over-year)
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Unfortunately, Q2 is the first quarter since 2012 when the 12-month rolling deliveries decreased, compared to the previous quarter. In the 12-months ending on June 30, 2020, Tesla delivered 388,668 cars (compared to 393,133 in Q1).

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Deliveries by model

  • Model 3/Y: 80,277 (up 3%)
  • Model S/X: 10,614 (down 40%)

Sales of 3/Y increased slightly, although S/X were hit hard.

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Forecast

Starting the year 2020 Tesla was sure that it would be able to "comfortably exceed 500,000 units". During the first half of the year, the company delivered close to 180,000 EVs and despite H1 being much weaker than would've been without the lockdown, 500,000 should be still achievable.

"We have the capacity installed to exceed 500,000 vehicle deliveries this year, despite recent production interruptions. While achieving this goal has become more difficult, delivering half a million vehicles in 2020 remains our target."

To achieve the goal, Tesla now has to sell some 320,000 in H2 or 160,000 per quarter on average, while the previous record was 112,095. The question is whether such a huge jump is possible?