Tesla’s (NASDAQ:TSLA) first-quarter earnings call comes on the heels of a surprisingly powerful quarter that saw the electric car maker posting $5.985 billion in revenue and an earnings per share of $1.24, beating Wall Street’s estimates.
As revealed in the company’s Q1 2020 Update Letter, Tesla currently sits on $8.1 billion in cash, which should help the company weather the effects of the coronavirus pandemic. Tesla Model Y production has also outpaced the initial ramp of the Made-in-China Model 3. This is a notable feat considering the fact that Tesla China’s Model 3 ramp is already far quicker than the company’s push for the sedan in Fremont.
For today’s earnings call, Tesla executives are expected to address questions surrounding the company’s plans for the coming quarters, especially amidst the effects of the pandemic. Updates on future projects such as the Cybertruck, Semi, and Roadster may also be mentioned, as well as more details on future Tesla Energy projects.
The following are live updates from Tesla’s Q1 2020 earnings call. I will be updating this article in real-time, so please keep refreshing the page to view the latest updates on this story. The first entry starts at the bottom of the page.
16:36 PT – And that’s a wrap everyone! This earnings call got a bit intense thanks to Elon’s COVID-19 comments, but otherwise, it continued to emphasize that Tesla is well on its way towards optimizing its operations, from its production to the deployment of its new products to consumers.
16:35 PT – Pierre Ferragu from New Street Research asks for an update on Tesla’s gross margins. Kirkhorn stated that when Tesla looks at margins, credits are included. Shutdown inefficiencies in Fremont and Shanghai weighed down Tesla’s margins as well. The CFO did note that Tesla saw strength in gross margins across the board despite lower volumes.
Ferragu follows up with a question on energy storage and how demand is always outstripping supply. As with other battery questions asked during this earnings call, VP of Technology Drew Baglino noted that this inquiry will be addressed on Battery Day.
16:30 PT – Gene Munster from Loup Ventures asks about the Tesla Network and the company’s Robotaxi strategy. Elon states that much testing is needed for such capabilities to be rolled out. Musk discusses how Tesla rolls out its new Autopilot and FSD functionalities. He emphasized that each feature passes through several stages, from simulation to EAP to wide release.
Musk did state that he hopes full functionality of FSD will be released by the end of the year. After this point, it’s just a matter of refining the system. Initial Robotaxi services will likely start with human drivers to supervise the vehicles. But with more data, Tesla can propose a fully-autonomous ride-hailing service to regulators. Musk hopes to accomplish this to some degree next year.
16:20 PT – Ben Kallo of Baird takes the stage. He asks about Tesla’s cell strategy. The answer? Tesla does not have one specific model, though details of this would be discussed on Battery Day.
16:10 PT – Adam Jonas of Morgan Stanley takes the stage. He asks about updates on Tesla’s liquidity this April. CFO Kirkhorn stated that he doesn’t have much color to add, though he emphasized that Tesla has over $8 billion in cash. He also reiterated that Tesla has more inventory now due to the effects of the pandemic.
Elon did admit that he is a bit worried about the Fremont factory’s ongoing shutdown. He reiterates his recent controversial points on Twitter, criticizing the ongoing lockdown procedures in the Bay Area. He did state that it is not only Tesla that is at risk with the ongoing shutdown, as other companies are also in crisis now.
When asked about his message to lawmakers on how to handle the C-19 crisis, Musk stated that he believes people should be allowed to leave their homes. He does this with a number of choice words. These will be very controversial statements.
16:06 PT – Now for a question about Tesla’s plan to move into the residential HVAC business. Musk noted that Tesla actually does this well already with the Model S and Model X, since both vehicles have hospital-grade filters. He also mentioned that Tesla’s HVAC could be all-in-one water creator, hot water heater, and HVAC rolled into one device.
Musk also reiterated the demand for the company’s battery storage solutions. He stated that Tesla has enough demand for its battery storage systems, at least for 2020.
16:00 PT – Next up is the Solar Roof ramp and forecasts for 2021. Elon noted that before COVID-19 shut everything down, Tesla’s Solar Roof ramp was actually seeing a lot of momentum. He remains optimistic about the flagship product nonetheless. “I’m confident that maybe by the end of the year, we may be installing about a thousand a week,” Musk said.
“Demand is good, production is good. The hold up is the installation,” Musk stated, stating that installing the Solar Roof is the hard part, with 1,000 teams installing 1,000 roofs per week.
16:00 PT – Retail investors’ questions from Say are up. Next Giga announcement? Elon says that it will happen within the next three months. He did state that the next Gigafactory will be in the United States. That’s the Cybertruck facility. Perhaps that facility will also produce the Semi? It makes sense considering that Fremont is already at full capacity with Model S, 3, X, and Y.
15:55 PT – Ah, the Battery Day question. Elon states that there will be many exciting news to tell on Battery Day. It will likely be one of the most exciting days in Tesla’s history, Musk stated. The event will likely be held around the third week of May.
As for FSD commercialization, Kirkhorn explained that in North America, Tesla takes about half of the $7,000 FSD cost for revenue while the other half is dedicated for more feature development. Deferred revenue from autopilot a little over $600M as well. Musk notes that there is a tremendous untapped potential for Autopilot and FSD as in-app purchases as well. It looks like the subscription model is indeed happening, at least for existing customers.
15:53 PT – Now it’s the COVID-19 question and how Tesla will come out of the experience. Musk states that Tesla is focusing on investing in improving and developing its products. There is an uncertainty, and there is a bumpy road, but “long-term prospects are extremely good,” Musk noted. Kirkhorn stated that Tesla’s digital nature actually deals with the pandemic situation well, with touchless deliveries and other similar initiatives. “For most people, they would rather go to the dentist than to buy a car… For Tesla, it’s as easy as ordering something from Apple’s app store or Amazon,” he said.
15:50 PT – Next question is China’s subsidies, which the MIC Model 3 does not meet today. Elon announced that Tesla China will be reducing the price of the Standard Range Model 3, allowing the vehicle to meet the requirements of the government’s subsidies. Kirkhorn adds that the cost of producing the vehicle in Shanghai is already lower than the costs of production in Fremont, and there are still opportunities to optimize this further.
15:48 PT – Questions from Say begin. First off is the possibility of FSD subscriptions. Elon states that it makes sense to buy FSD an investment in the future, and Tesla is confident of its long-term value. Kirkhorn agreed, though he stated that a subscription model can allow owners to spread out the expenses for such an option. “Our goal is to do the best thing for customers,” Musk said.
15:45 PT – CFO Zach Kirkhorn takes the stage. He begins by highlighting how the Model Y started with profitability, something that has not been accomplished in the past. Kirkhorn stated that Tesla did not see much effects from the expiration of the federal regulatory credits. Model 3 production in China is going well too.
That being said, Kirkhorn mentioned that Tesla did meet some headwinds. Production inefficiencies still happened, such as with the ramp of Solar Roof V3. The CFO added that Model Y in Shanghai and Berlin are on track, and for now, Gigafactory 3 remains the one factory that is still operating fully.
15:40 PT – Musk also touched on the Model Y’s two-piece casting design, which will make production more optimized while saving weight and cost. He also mentioned the introduction of the Model Y’s heat pump, which helps the Model Y maintain its industry-leading range despite being larger than the Model 3. Musk also stated that the reception to the Model Y from customers has been “universally positive.”
In conclusion, Tesla will be continuing Model Y production at full speed in Fremont, Shanghai, and when it’s ready, Berlin. Musk lightly remarked that this is a forward-looking statement, though he stated that by next year, he believes Tesla can have a capacity of 1 million cars per year.
15:35 PT – Elon Musk states that Tesla was able to make a profit despite the ongoing headwinds in the market and a seasonally soft quarter. Model Y production in Fremont in Q1 was faster than the first two quarters of Model 3 production. The Y is also profitable from launch, something that has not happened before.
Elon also touched on Tesla’s Traffic Light and Stop Sign Control feature. He is very optimistic, stating that the feature is growing at a rapid rate. Each use of the feature trains Tesla’s Neural Net further. “I feel extremely confident that it will be possible to do a drive from your home to your office with minimal interventions by the end of the year,” Musk said.
Musk also spoke about the Model S and Model X range increases. Musk stated that the real Model S test was 400 miles, but the vehicle ended up losing 2% of its range before it was tested. “The true range of the Model S for the past two months is 400 miles. We’re not stopping now,” Musk added.
15:33 PT – Senior investor relations officer Martin Viecha takes the floor. Elon Musk and Zachary Kirkhorn are present. Elon Musk takes the stage with his opening remarks.
15:30 PT – And the call begins, though Tesla seems to be a bit delayed. I’m strangely wondering if the call will be held using Skype or Zoom due to social distancing rules. That would make this earnings call extra interesting.
15:25 PT – T-5 minutes until the earnings call is scheduled to begin. Now it’s just a matter of seeing if Tesla will start in Elon Time V1.0 or Elon Time V2.0.
15:15 PT – It is time once more for Tesla’s quarterly earnings report! It’s pretty amazing that they were able to end the first quarter with a profit. Imagine that. A profit. In the first quarter. With some of it being under a literal global pandemic. The Q1 2020 Update Letter is full of interesting details. Fasten your seatbelts, everyone. This will be very interesting.
Tesla $TSLA Q1 2020 results: Beats on revenue, Model Y sets historic profit on launch https://t.co/0Z5Ym5t4eh
— TESLARATI (@Teslarati) April 29, 2020
Elon Musk
Elon Musk debunks latest rumors about SpaceX IPO
Musk has swiftly put to rest circulating reports suggesting that SpaceX would exclude popular retail brokerages Robinhood and SoFi from its highly anticipated initial public offering. In a direct response posted on X on March 31, Musk stated simply, “These reports are false,” addressing widespread speculation fueled by a Reuters article.
Tesla and SpaceX CEO Elon Musk debunked the latest rumors about the space exploration company’s initial public offering (IPO), which has been the subject of a wide array of speculation over the last few weeks.
With SpaceX likely heading to Wall Street to become a publicly-traded stock in the coming months, there is a lot of speculation surrounding how it will happen, whether the company will potentially combine with Tesla, and more.
Tesla and SpaceX to merge in 2027, Wall Street analyst predicts
But the latest rumors have to do with where SpaceX will list the stock.
Musk has swiftly put to rest circulating reports suggesting that SpaceX would exclude popular retail brokerages Robinhood and SoFi from its highly anticipated initial public offering.
In a direct response posted on X on March 31, Musk stated simply, “These reports are false,” addressing widespread speculation fueled by a Reuters article.
These reports are false
— Elon Musk (@elonmusk) March 31, 2026
The Reuters report, published March 30, claimed that Morgan Stanley’s E*Trade was in talks to lead the sale of SpaceX shares to small U.S. investors.
Sources indicated that Robinhood and SoFi, despite pitching for roles, faced potential exclusion from the retail allocation, with Fidelity also competing for a piece of the action. The story quickly spread across financial media, raising concerns among retail investors eager to participate in what could be one of the largest IPOs in history.
SpaceX has a reported valuation nearing $1.75 trillion, and Musk’s plan to allocate up to 30 percent of shares to individual investors — far above the typical 5-10% — had generated massive excitement.
Musk’s concise denial immediately calmed the narrative. The original X post quoting the rumor garnered significant engagement, with users expressing relief that everyday investors would not be sidelined.
This episode reflects Musk’s hands-on approach to SpaceX’s public debut.
Earlier reporting revealed plans for an unusually large retail slice to leverage Musk’s dedicated fan base and stabilize post-IPO trading. SpaceX aims to file potentially as early as this period, building on momentum from its Starship program and Starlink growth.
The IPO could mark a transformative moment, potentially elevating Musk’s status further while democratizing access to a company long reserved for accredited investors and institutions.
The rumor’s quick debunking also revives debates about retail access in high-profile listings. Robinhood gained popularity during the 2021 meme-stock surge but faced criticism for past trading restrictions.
SoFi has positioned itself as a modern financial platform for younger investors. Excluding them could have limited participation from tech-savvy retail traders who form a core part of Musk’s supporter base across Tesla and SpaceX.
While details remain fluid, Musk’s intervention reinforces commitment to broad accessibility. As preparations advance, investors await official filings. For now, the message is clear: rumors of restricted retail access were overstated, keeping the door open for widespread participation in SpaceX’s public chapter.
This development comes amid broader market enthusiasm for space and technology stocks. Musk’s transparency through X continues to shape public perception, distinguishing SpaceX’s path from traditional Wall Street norms. With retail allocation potentially reaching 30 percent, the IPO promises to be both commercially massive and culturally significant.
Investor's Corner
Tesla and SpaceX to merge in 2027, Wall Street analyst predicts
The move, Ives argues, is no longer a distant possibility but a logical next step, fueled by deepening operational ties, shared AI ambitions, and Elon Musk’s vision for dominating the next era of technology.
Tesla and SpaceX are two of Elon Musk’s most popular and notable companies, but a new note from one Wall Street analyst claims the two companies will become one sometime next year, as 2027 could see the dawn of a new horizon.
In a bold new research note, Wedbush analyst Dan Ives has reaffirmed his long-standing prediction: Tesla and SpaceX will merge in 2027.
The move, Ives argues, is no longer a distant possibility but a logical next step, fueled by deepening operational ties, shared AI ambitions, and Elon Musk’s vision for dominating the next era of technology.
He writes:
“Still Expect Tesla and SpaceX to Merge in 2027. We continue to believe that SpaceX and Tesla will eventually merge into one company in 2027 with the groundwork already in place for both operations to become one organization. Tesla already owns a stake in SpaceX after the company’s $2 billion investment in xAI got converted to SpaceX shares following SpaceX’s acquisition of xAI earlier this year initially tying both of Musk’s ventures closer together but still represents <1% of SpaceX’s expected valuation. The recent announcement of a joint Terafab facility between SpaceX and Tesla further ties both operations together making it more feasible to merge operations given the now existing overlap being built out across the two with this the first step.”
The groundwork is already being laid. Earlier this year, SpaceX acquired xAI, converting Tesla’s $2 billion investment in the AI startup into a small equity stake, less than 1 percent, in SpaceX.
Regulatory filings cleared the transaction in March 2026, formally linking the two Musk-led companies financially for the first time. Then came the announcement of a joint TERAFAB facility in Austin, Texas: two advanced chip factories, one dedicated to Tesla’s AI needs for vehicles and Optimus robots, the other targeting space-based data centers.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
Ives calls Terafab the “first step” toward full operational integration.
SpaceX’s impending IPO, expected as soon as mid-June 2026, will turbocharge these plans. The company aims to raise approximately $75 billion at a roughly $1.75 trillion valuation, far exceeding earlier estimates.
Proceeds will fund Starship rocket flights, a NASA-contracted lunar base, expanded Starlink services across maritime, aviation, and direct-to-mobile applications, and crucially, orbital AI infrastructure
A major driver is the exploding demand for AI compute. U.S. data centers are projected to consume 470 TWh of electricity by 2030, constrained by power grids and land.
🚨 Wedbush’s Dan Ives says that Tesla and SpaceX will merge in 2027. SpaceX will IPO soon, his new note says:
“According to media reports, SpaceX could file a prospectus for an IPO imminently with the goal of raising ~$75 billion above the prior expectation of ~$50 billion…
— TESLARATI (@Teslarati) March 27, 2026
SpaceX’s strategy, launching millions of solar-powered satellites to host data centers in orbit, bypasses Earth’s energy bottlenecks. Solar energy captured in space avoids atmospheric losses and day-night cycles, offering a scalable solution for AI training and inference.
The xAI acquisition ties directly into this vision, positioning the combined entity as a leader in extraterrestrial computing.
The merger would create a formidable conglomerate spanning electric vehicles, robotics, satellite communications, human spaceflight, and defense.
Ives highlights SpaceX’s role in the Trump administration’s “Golden Dome” missile defense shield, which would leverage Starlink satellites for tracking.
For Tesla, access to SpaceX’s launch cadence and orbital assets could accelerate autonomous driving, Robotaxi fleets, and Optimus deployment.
Musk, who has signaled his desire to own roughly 25 percent of Tesla to steer its AI future, views the combination as essential to overcoming fragmented regulatory scrutiny from the FTC and DOJ.
Challenges remain. Antitrust hurdles could delay or reshape the deal, and shareholder approvals on both sides would be required. Yet Ives remains bullish, maintaining an Outperform rating on Tesla with a $600 price target, implying substantial upside from current levels. The analyst sees the merger as the “holy grail” for consolidating Musk’s disruptive tech empire.
If realized, a 2027 Tesla-SpaceX union would not only reshape corporate boundaries but redefine humanity’s trajectory in AI and space exploration. It would mark the moment two pioneering companies become one unstoppable force, pushing the limits of what’s possible on Earth and beyond.
Elon Musk
TIME honors SpaceX’s Gwynne Shotwell: From employee No. 7 to world’s most valuable company
Time Magazine honors Gwynne Shotwell as SpaceX reaches a $1.25 trillion valuation and eyes its IPO.
TIME Magazine has put SpaceX President and COO Gwynne Shotwell on its cover, and the timing could not be more fitting. Published today, the profile of Shotwell arrives at a moment when the company she has quietly run for more than two decades stands at the center of the most consequential developments in aerospace, artificial intelligence, and the future of human civilization.
Shotwell joined SpaceX in 2002 as its seventh employee and has never stopped expanding her role. She oversees day-to-day operations across multiple executive teams spanning Falcon, Starlink, Starship, and now xAI following SpaceX’s February 2026 merger with Elon Musk’s artificial intelligence company, a deal that made SpaceX the world’s most valuable private company at a reported valuation of $1.25 trillion. A highly anticipated IPO is expected in the second quarter of 2026.
Will Tesla join the fold? Predicting a triple merger with SpaceX and xAI
Her track record is historic. She oversaw the first landing of an orbital rocket’s first stage, the first reuse and re-landing of an orbital booster, and the first private crewed launch to Earth orbit in May 2020. She built the Falcon launch manifest from nothing to more than 170 contracted missions representing over $20 billion in business. Under her operational leadership, SpaceX completed 96 successful missions in 2023 alone and has now flown more than 20 crewed Falcon 9 missions. Starlink, which she championed as a financial pillar of the company long before it was a mainstream topic, now connects tens of millions of users worldwide and provided a critical communications lifeline to Ukraine following the 2022 invasion.
Elon Musk has never been shy about what Shotwell means to him and to SpaceX. When she shared her vision for worldwide internet connectivity through Starlink, Musk responded on X with a simple statement, “Gwynne is awesome.” It is a sentiment that has been echoed across the industry. NASA Administrator Bill Nelson once said of Musk: “One of the most important decisions he made, as a matter of fact, is he picked a president named Gwynne Shotwell. She runs SpaceX. She is excellent.”
Gwynne is awesome https://t.co/tiXtMWJmPE
— Elon Musk (@elonmusk) September 28, 2024
Now, with Starship targeting its first crewed lunar landing under the Artemis program by 2028, an xAI integration underway, and a pending IPO that could reshape capital markets, Shotwell’s mandate has never been larger. She told Time that 18 Starships are already in various stages of construction at Starbase. “By 2028,” she said, gesturing across the factory floor, “these should be long gone. They better have flown by then.” If Shotwell’s history at SpaceX is any guide, they will.
Tesla removes Model S and X custom orders as sunset officially begins
SpaceX files confidentially for IPO that will rewrite the record books
Elon Musk hints at “official ceremony” with throwback photo to close Tesla Model S, Model X chapter
Elon Musk says Tesla is developing a new vehicle: ‘Way cooler than a minivan’
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
