Tesla posted its third straight quarterly profit, on strong sales of its Model 3 and Y, but said business disruptions caused by the coronavirus pandemic were clouding its outlook for the rest of the year.
Why it matters: It's difficult for any company to forecast the future at this moment, but having raised $2.3 billion in February, Tesla said it has enough liquidity to keep investing in future products and long-term factory expansion.
- That could give Tesla extra momentum when the crisis finally passes.
Yes, but: There are many uncertainties, and Tesla's success will depend, to a large extent, on factors outside of its control.
- The most important is the reopening of its Fremont, California, assembly plant, where Model Y production had recently begun alongside Model 3. It is currently idled because of a Bay Area stay-at-home order.
- Tesla's new Shanghai factory has resumed production after coronavirus disruptions in China, and a new factory is planned for Germany.
- Tesla said it would delay its Semi truck until 2021. There's no word yet on the fate of its electric Cybertruck pickup.
By the numbers: Tesla's first quarter was better than analysts had expected.
- The company eked out a $16 million net profit in the first quarter on $5.1 billion in revenue.
- Its $283 million pre-tax operating income represented a 4.7% operating margin.
- The company was on track for its strongest quarterly deliveries before the pandemic, so it remains confident after production resumes.
- "At the same time, we are diligently managing working capital, reducing noncritical spend, and driving productivity improvements. We believe we are well-positioned to manage near-term uncertainty while achieving our long-term plans," Tesla said.
Tesla CEO Elon Musk is hosting an investor call later today; come back for more details.
Go deeper: Report: Tesla to cut employees' pay up to 30% and furlough workers
