Tesla managed to turn a small profit in the first quarter despite the impact of COVID-19 on production and sales, according to the company’s Q1 update.
While the pandemic’s longterm impact is still unknown, Tesla still hopeful in can produce 500,000 vehicles worldwide, according to the report.
“We have the capacity installed to exceed 500,000 vehicle deliveries this year, despite announced production interruptions,” the report said. “For our US factories, it remains uncertain how quickly we and our suppliers will be able to ramp production after resuming operations. We are coordinating closely with each supplier and associated government.”
Tesla reported a GAAP profit during the first quarter of $16 million on $5.99 billion in revenue. Free cash flow, however was negative $895 million, which complicates the company’s goal to be cash flow and net income positive on a continuing basis this year.
Tesla previously announced Q1 deliveries of about 88,400 vehicles, including 76,200 Model 3 sedans and Model Y cross-over SUVs, it’s best quarter ever.
Check out the full report here.
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