At Tesla, the trees seem to grow into the sky. Tesla is still outperforming other brands when it comes to electric cars. In addition to the news that Tesla will build an entirely new factory in Texas, CEO Elon Musk also presented positive quarterly figures. However, you can make a comment on these profit figures.
In the second quarter of this year, Tesla made a profit of 104 million dollars, about 90 million euros. This is considerably more than the 16 million profit that Tesla made last quarter. Remarkably, other brands are expected to record a loss for the second quarter. The cause of this is the corona crisis, which is significantly cutting for car manufacturers .
It is now the fourth time in a row that Tesla has closed a quarter in the black numbers. So Tesla has been making a profit for a year, something many people could not imagine until recently . Tesla’s stock market value, meanwhile, is still far above that of much larger automakers, such as Volkswagen and Toyota. This is impressive for a car brand that has not been active for a very long time and has single-handedly opened up a whole new market.
Not what it seems
However, things are not so rosy if you look closely at Tesla. The huge profit during a period of a record decline in car sales indicates that the money was not earned on delivered cars. Despite the fact that Tesla managed to produce more cars than expected during the corona crisis, significantly fewer Teslas were sold. Irrespective of the corona crisis, Tesla’s growth seems to have leveled off for a while: the number of newly sold Teslas has remained at the same level for more than a year.
If the profit doesn’t come from sold cars, where does it come from? The answer lies in the pot of gold Tesla is on: compensation rights for CO2 emissions. Other car brands still sell too few electric cars to fall below the set emission standards. To reduce the average emissions, car brands can buy offset rights. Tesla, of which no car emits anything, therefore greatly benefits from the lag of the competition.
In the previous quarter, Tesla was able to add no less than $ 428 million to those sold offset rights , or $ 370 million. Of this huge amount, only a quarter remained for the profit. It is known that Tesla is still making losses on its cars, although of course the company also invests a lot. This means that Tesla must nevertheless monitor its business operations.
The sale of offset rights now makes Tesla a lot of money, but it only works in the short term. Other brands are busy developing hybrids and electric cars to reduce their average emissions. They naturally want to get rid of paying a competitor for their own shortcomings as soon as possible. Ultimately, Tesla will have to earn his money with his own cars.