Elon Musk is amazed how well Tesla executed in Q2 — possible profit?

Elon Musk sent an email to Tesla employees today thanking them for “executing well” during the second quarter, spurring rumors of possible record deliveries and small profit amid the global pandemic.

Last week, Electrek reported that Tesla could surprise with strong deliveries in the second quarter, despite the factory shutdown and slow first half of the quarter due to the global pandemic and restrictions put in place to slow down the spread.

Earlier this week, we reported on Musk telling employees that Tesla could break even in Q2, despite the difficult situation.

As we reported at the time, it was dependent on Tesla delivering about 10,000 vehicles in-transit in the last few days of the quarter.

Now that the quarter is over, Musk sent another email to employees thanking them for their hard work “in such difficult times,” but he didn’t confirm if Tesla broke even like he said it was possible earlier in the week.

However, the CEO said that Tesla executed “well” during the quarter.

Here’s the email in full:

Just amazing how well you executed, especially in such difficult times. I am so proud to work with you!
Tesla is expected to release its delivery and production results for the quarter later this week, and we won’t know if Tesla was able to turn a profit until the earnings results, which will likely be later this month.

Electrek’s Take

We have to read a bit between the lines here, but it is looking good in my opinion.

I still believe that Tesla could have delivered over 90,000 cars in the quarter, which would be amazing in the current circumstances.

If they can reach 95,000 deliveries, which could be a stretch, it would match Tesla’s previous delivery record for a second quarter.

In comparison, most other automakers are seeing a 30%+ drop in deliveries in the second quarter due to the global pandemic.

As for breaking even or a possible small profit, I think it’s still a real possibility if they delivered that kind of volume — plus an increase in the FSD package take rate.

The FSD package could have brought a few hundreds of millions for Tesla in Q2.

What do you think? Let us know in the comment section below.

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