Tesla’s (NASDAQ:TSLA) third-quarter earnings call comes on the heels of an impressive quarter that saw the electric car maker posting $8.771 billion in revenue and $809M GAAP operating income, beating Wall Street’s estimates once more. With these results, Tesla has now posted five consecutive profitable quarters.
As revealed in the company’s Q3 2020 Update Letter, Tesla currently sits on $5.9 billion in cash. This is despite the company’s simultaneous construction of Gigafactory Shanghai, Gigafactory Berlin, and Gigafactory Texas. Impressively enough, Model 3 and Model Y production have reached a run-rate of 500,000 vehicles per year at the Fremont factory. This, together with the facility’s capability to produce 90,000 Model S and Model X annually, as well as Gigafactory Shanghai’s current 250,000-per-year capacity, allows Tesla to take a definitive step towards a run-rate of 1 million cars per year.
For today’s earnings call, Tesla executives are expected to address questions surrounding the company’s plans for the coming quarters, particularly its battery cell production strategy. Updates on future projects such as the Cybertruck, Semi, and Roadster may also be mentioned, as well as more details on the third quarter’s surprising Tesla Energy results.
The following are live updates from Tesla’s Q3 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.
15:35 PT: And that’s it for the Q3 2020 earnings call! Thanks so much for staying with us for yet another live blog. We will see you in the next one.
15:34 PT: Final question from Philippe Houchois from Jefferies, who asks about Tesla’s business model for stationary storage. Johnson notes that Tesla is already seeing how energy prices are already seeing benefits from products like the Megapack and Powerwall. Using the hardware and software platform in the form of Autobidder, Tesla Energy has tons of potential.
The analyst also asks about Tesla’s skateboard design, which Musk confirmed will be obsolete in the long term. Musk notes that Tesla is looking to make its vehicles kind of like the way a toy car is made, with large casts and few parts. Using batteries as part of the vehicle’s structure is used in aircraft and rockets, so this approach would likely work for cars too. With such a strategy, Tesla is literally borrowing from orbital-class rocket design philosophy.
“You wouldn’t want to put a box in a box,” Musk noted. He did state that the transition away from the skateboard design won’t happen overnight, but it is bound to happen.
15:30 PT: Ben Kallo of Baird asks about OEMs and how they can get their act together. Elon notes that there will definitely be other car companies even after the EV age. He notes that Tesla designs and builds so much more of its cars than traditional OEMs. “It’s not very adventurous, and all the parts end up looking the same since they go to the same suppliers,” he said. “We’re probably an order of magnitude more vertically-integrated than other companies,” he adds.
Tesla is working on several parties to ensure that the Semi will have a legitimate charging infrastructure on the vehicle. “We’re not working in isolation,” Guillen noted.
Musk adds that the Semi consumes about 5-6x the cells of conventional cars. “We need to solve cell constraints,” the CEO states. When asked if the Semi and autonomy could be a material business, Musk stated that there is no doubt. Guillen added that the tech that Tesla is putting on the Semi is identical to the tech the company is putting on its other vehicles.
As a follow-up, Levy asked about Tesla’s strategy with pricing, especially with regards to Berlin-made vehicles. Kirkhorn explains that this is affected by different factors, though Tesla is trying to move production higher to optimize pricing.
15:20 PT: Pierre Ferragu of New Street Research asks about the Cybertruck and its ramp. Musk notes that he and the Tesla team are working hard on making sure that the Cybertruck will be better than the prototype that was unveiled last year. “We want the car we deliver to be better than the car we unveiled.” Musk notes that there are a “lot of small improvements” that have been made to the vehicle, making it better than its already-impressive prototype. “I think it’s going to be better than what we showed. It will be made in Austin,” he added.
Musk reiterates that the Cybertruck’s hard exoskeleton will likely present some challenges with the vehicle’s manufacturing. “But nevertheless, “if all goes well, we can do some Cybertruck deliveries towards the end of next year.” Musk predicts lots of deliveries in 2022 and the year after.
15:15 PT: Colin Rusch of Oppenheimer asks about Tesla’s processes and operations/equipment that are coming in-house. Musk notes that Tesla is “absurdly vertically integrated.” Tesla literally designs the machine, then the company makes the machine. “We made the machine that made the machine that made the machine. We’d like to outsource less,” Musk remarked. “This makes it quite difficult to copy Tesla,” he added. Musk admits that he’s not sure if insane vertical integration is a smart move, but so far, it appears that it is.
Musk is then asked about Tesla’s balance sheet, and how the company is looking to operate in the near future. “We’re trying to spend money at the fastest rate without wasting any of it,” Musk noted.
15:10 PT: Analyst questions begin. Wolfe Research is up first, asking about the targets that were announced during Battery Day. Elon noted that it’s difficult to predict Tesla’s actual output, but 20 million vehicles is a good number, representing 1% of the vehicles that are produced this year. Tesla has a mission to accelerate the advent of sustainability after all, and it needs volume to do that.
When asked about Tesla’s cell production, Musk noted that Tesla could and will change all aspects of the company’s battery cells. “We will change all aspects of the cell,” he said. Tesla will be exploring varying chemistries for its batteries over time. This is classic Tesla, in a way, as the electric car maker is still showing its tendency to continuously innovate.
15:05 PT: Elon highlights why making Tesla’s cars affordable is pivotal. “All of these margins will look comically small when you factor in Autonomy,” Musk said. Adding to the CEO’s statement, Kirkhorn stated that Tesla is moving full speed ahead with as much volume as possible. He adds that Tesla has grown volume and margins even with all the price reductions of Tesla’s vehicle lineup. In addition to reducing costs, the cars get better, and this becomes a reason for more consumers to purchase the company’s cars.
15:00 PT: A question from an institutional investor is brought up about Tesla’s HVAC plan, especially in light of the Model Y’s heat pump. Drew Baglino notes that the Model Y’s heat pump does provide Tesla with some background in this sense, and Elon Musk noted that the company has tech that should allow for home products to be developed.
14:58 PT: Shareholder questions begin with a question about the company’s 4680 cells and if they will be produced at the same time as vehicle ramp in Berlin, which Drew Baglino confirms will indeed be the case. As for the idea of FSD being carried over from one vehicle to the next, Elon Musk noted that Tesla will “give it some thought.”
An inquiry about Solar Roof installation constraints was also asked. According to Johnson, the main constraint today lies in the installers themselves. It is pertinent for Tesla to ensure that the Solar Roof is easy to install, and so far, the response from third-party installers have been positive. Elon Musk notes that Solar Roof’s true potential would likely be very evident next year.
In response to a question about the idea of one of Tesla’s businesses spinning off into its own company, Musk discusses how Tesla is essentially a series of startups. “Every major product line is a startup. Every big new plant is a startup. And frankly, sometimes we have to learn a lesson a few times before it sinks in,” Musk remarked. He also noted that “Tesla is not dependent on enterprise software,” implying that Tesla develops all of its operational software internally.
No plans to spin anything out yet though. “It just adds complexity,” Musk said.
14:50 PT: RJ Johnson of Tesla Energy takes the stage. He discusses how Tesla Energy is ramping. “We have more demand than supply through 2021,” he said. Megapack is seeing more demand over the following year. He notes that as costs go lower, sustainable technologies are poised to replace fossil fuel-powered solutions. Other Tesla Energy products such as Autobidder and Powerwall continue to find more adoption as well.
Solar Roof is exciting as the company is gaining more experience in installing the product quickly. Solar Roof installation’s record now stands at 1.5 days.
14:45 PT: To conclude, Musk thanks Tesla’s employees and suppliers. He also extends thanks to investors who have stuck with the company through thick and thin. “I’ve never felt more optimistic about Tesla than I do today,” Musk said.
Zach Kirkhorn takes the stage. He mentions how Tesla now has five profitable quarter. The company’s regulatory credit sales continue to be strong. And despite expenses being higher due to Elon Musk’s payout from his compensation plan, the company was able to keep its numbers strong just the same. Manufacturing and operational costs continue to decrease, as per the CFO.
14:41 PT: The CEO also highlights that the Autopilot rewrite is a generalized approach to FSD, meaning that there are no specialized sensors needed for the vehicles to operate themselves.
In terms of capacity, Elon mentions the expansion of Gigafactory Shanghai, Gigafactory Berlin, and Gigafactory Texas. “We’re making progress on three major factories,” he said, adding that “always impressed by how much the Tesla China team makes.” Musk also notes that Giga Berlin, due to the ramp of new technology, the production of the facility will start slow, and then ramp to greater outputs over time. Giga Berlin could take about 12-24 months to reach full production capacity.
14:36 PT: Elon talks about how Q3 is a record quarter for Tesla. Full Stop. “Q3 was our best quarter in history,” he said. The CEO also discusses Battery Day, the culmination of years’ worth of work by the company. Musk notes that in a few years, batteries could cost half as much with cheaper production costs.
Musk also discusses updates to the rollout of Full Self-Driving. He specifically extends his thanks to the Autopilot team, which has been working like crazy to release the highly-anticipated rewrite. Musk states that the Autopilot rewrite could roll out to more drivers this weekend, with wide release by the end of the year.
14:34 PT: And we’re off! Tesla Investor Relations’ Martin Viecha takes the floor. Just like previous calls, CEO Elon Musk and CFO Zachary Kirkhorn are present, as well as other Tesla executives. Here’s Elon’s opening remarks.
14:32 PT: Then again, Tesla posted $809M GAAP operating income in Q3. That’s more than enough to justify a little delay, I guess.
14:30 PT: And… It’s starting! Here we go, folks… Wait, scratch that. It’s back to classical music.
14:25 PT: I gotta admit, this classical music is getting more and more relaxing by the quarter.
14:20 PT: It is time once more for Tesla’s quarterly earnings report! This makes five consecutive profitable quarters for Tesla now, which is something that definitely did not seem to be on the horizon in early 2019. Back then, it seemed like TSLA was the punching bag of every bear and critic out there. But since Q3 2019, things have changed, a whole lot. Needless to say, this earnings call will definitely be interesting.
Investor's Corner
Tesla and SpaceX get latest synopsis from Wall Street legend Ron Baron
In a wide-ranging appearance on CNBC’s Squawk Box on May 12, legendary investor Ron Baron, founder, CEO, and portfolio manager of Baron Capital, reaffirmed his deep conviction in Elon Musk’s two flagship companies.
Legendary investor Ron Baron says he will continue buying stock of both Tesla and SpaceX, as he continues his support behind CEO Elon Musk, who he says is a special person and “brilliant.”
In a wide-ranging appearance on CNBC’s Squawk Box on May 12, legendary investor Ron Baron, founder, CEO, and portfolio manager of Baron Capital, reaffirmed his deep conviction in Elon Musk’s two flagship companies.
With assets under management approaching $55–56 billion, Baron detailed his firm’s substantial holdings, outlined plans for the anticipated SpaceX IPO, and painted an exceptionally optimistic picture for both Tesla (NASDAQ: TSLA) and SpaceX, framing them as generational opportunities that will reshape industries and deliver extraordinary long-term returns.
Baron Capital’s position in SpaceX has grown dramatically since the firm began investing around 2017. What started as roughly $1.7 billion has ballooned to more than $15 billion, making it the firm’s largest holding.
Tesla ranks second, valued at approximately $5 billion in the portfolio. Together with stakes in xAI and related Musk-led ventures, these investments account for roughly one-third of Baron Capital’s $60 billion in lifetime profits since 1992. Baron emphasized that the growth stems from Musk’s singular ability to execute ambitious visions—from reusable rockets to global satellite internet and beyond.
The centerpiece of the discussion was SpaceX’s expected initial public offering, targeted for mid-2026 following a confidential S-1 filing. Baron announced plans to purchase an additional $1 billion in shares at the IPO.
Ron Baron said today that he plans on buying an additional $1 billion of SpaceX stock during the upcoming IPO:
“At the IPO price, I’ve got an order for $1 billion. I want to buy more stock at the IPO. I don’t know if we’re going to get filled, but we’re going to try. I believe… pic.twitter.com/KOv1HvYcZ0
— Sawyer Merritt (@SawyerMerritt) May 12, 2026
He described the company’s trajectory in sweeping terms: “This is going to become the largest company on the planet.”
He highlighted Starlink’s expansion of high-speed internet to every corner of the globe, the revolutionary economics of reusable rockets, and Starship’s potential to enable massive space-based data centers and interplanetary infrastructure.
Baron sees SpaceX not merely as a rocket company but as a platform poised for exponential scaling once it goes public, with post-IPO appreciation potentially reaching 10- to 20- or even 30-times current levels over the next decade or more.
On Tesla, Baron struck an equally enthusiastic note, declaring that “now is Tesla’s moment.” He projected the stock could reach $2,000 to $2,500 per share within 10 years—implying a market capitalization near $8.3 trillion and roughly 5–6 times upside from recent levels. While Tesla remains a major holding, Baron’s optimism centers on its evolution beyond electric vehicles into an AI, robotics, autonomous-driving, and energy platform.
He pointed to robotaxis, Full Self-Driving (FSD) technology, Optimus humanoid robots, energy storage, and the vast real-world data advantage from Tesla’s global fleet as catalysts that will fundamentally alter the company’s revenue model and valuation multiples. Baron views these developments as transformative, shifting Tesla from a traditional automaker to a high-margin technology and infrastructure powerhouse.
Throughout the interview, Baron’s admiration for Musk was unmistakable. He has likened the entrepreneur to a modern Leonardo da Vinci for his artistic, multidisciplinary approach to solving humanity’s biggest challenges.
Baron’s personal commitment mirrors this confidence: he has repeatedly stated he does not expect to sell a single share of his own Tesla or SpaceX holdings in his lifetime, positioning himself as the “last one out” after his clients. This stance underscores a philosophy of patient, long-term ownership rather than short-term trading.
Baron’s comments arrive at a time of heightened anticipation around SpaceX’s public debut, which could rank among the largest IPOs in history and potentially value the company at $1.5–2 trillion or more at listing.
For investors, his message is clear: the Musk ecosystem—spanning electric vehicles, autonomy, robotics, satellite communications, and space exploration—represents one of the most compelling secular growth stories of the era. While short-term volatility in tech and EV stocks may persist, Baron sees these as buying opportunities for those who share his multi-decade horizon.
In summarizing his outlook, Baron reinforced that the combination of technological breakthroughs, massive addressable markets, and Musk’s leadership creates asymmetric upside that few other investments can match.
For Baron Capital’s clients and long-term Tesla and SpaceX shareholders alike, the investor’s latest CNBC remarks serve as both validation and a call to remain patient through the inevitable ups and downs. As Baron sees it, the best days for both companies—and the returns they can deliver—are still ahead.
Elon Musk
Trump’s invite for Elon just reshuffled Tesla’s big Signature Delivery Event
Tesla rescheduled its final Model S farewell to May 20 after Musk joined Trump in China.
Tesla has rescheduled its Model S and Model X Signature Edition delivery event to Wednesday, May 20, 2026, after abruptly calling off the original May 12 celebration. The event will take place at Tesla’s factory at 45500 Fremont Boulevard in Fremont, California, the same location where the Model S first rolled off the line in 2012. Invitees received a follow-up email asking them to reconfirm attendance and download a new QR code ticket, with Tesla noting that all travel and accommodation expenses remain the buyer’s responsibility.
The reason behind the original cancellation came into focus the same day it was announced. President Trump invited Elon Musk, Apple’s Tim Cook, BlackRock’s Larry Fink, Boeing’s Kelly Ortberg, and executives from Goldman Sachs, Blackstone, Citigroup, and Meta to join his trip to China this week for a summit with President Xi Jinping. The agenda covers trade, artificial intelligence, export controls, Taiwan, and the Iran war, following weeks of escalating friction between Washington and Beijing over AI technology, sanctions, and rare earth exports. Trump wrote on Truth Social, “I am very much looking forward to my trip to China, an amazing Country, with a Leader, President Xi, respected by all.”
Tesla launches 200mph Model S “Gold” Signature in invite-only purchase
The vehicles at the center of all this are the last Model S and Model X units Tesla will ever build. Priced at $159,420 each, the 250 Model S and 100 Model X Signature Edition units come finished in Garnet Red with a one-year no-resale agreement, giving Tesla right of first refusal if the owner decides to sell. As Teslarati reported, the Model S defined Tesla’s early identity as a serious luxury automaker, and the Fremont factory line that built it is now being converted to manufacture Optimus humanoid robots.
Musk’s inclusion in the China delegation drew attention given his very public relationship with Trump, and the invitation signals the two have moved past and past grievances. Trump originally brought Musk on to lead the Department of Government Efficiency following his inauguration, and despite a sharp public dispute in mid-2025, the two have appeared together repeatedly in recent months. A seat on the China trip, the most diplomatically consequential visit of Trump’s current term, puts Musk back at the table on U.S. economic policy at a moment when Tesla’s China revenue remains one of the company’s most important financial pillars.
Investor's Corner
Tesla Optimus is already benefiting investors, top Wall Street firm says
Piper Sandler has updated its detailed valuation model for Tesla (NASDAQ: TSLA), concluding that at recent share prices around $400–$420, investors are essentially acquiring the company’s ambitious Optimus humanoid robot project at no extra cost.
Tesla Optimus is already benefiting investors from a fiscal standpoint, at least that is what Alexander Potter at Piper Sandler, a top Wall Street firm covering the company, says.
Piper Sandler has updated its detailed valuation model for Tesla (NASDAQ: TSLA), concluding that at recent share prices around $400–$420, investors are essentially acquiring the company’s ambitious Optimus humanoid robot project at no extra cost.
Analyst Alexander Potter, in the firm’s latest “Definitive Guide to Investing in Tesla,” built a comprehensive framework covering 17 separate product lines.
This granular approach values Tesla’s core businesses—including electric vehicles, energy storage, Full Self-Driving (FSD) software, in-house insurance, Supercharging network, and a standalone robotaxi operation—at approximately $400 per share, without assigning any value to Optimus or related inference-as-a-service opportunities.
“At $400/share, we think investors can buy Optimus for ‘free,’” Potter stated in the note. Piper Sandler maintained its Overweight rating on Tesla shares and a $500 price target, which implicitly attributes roughly $100 per share to the robot-related businesses— a figure the analyst views as potentially conservative.
The updated model incorporates elements often overlooked by other sell-side analysts, such as detailed forecasts for Tesla’s insurance operations, Supercharger revenue, and a distinct valuation for the robotaxi business separate from FSD software licensing. It also accounts for Tesla’s 2025 CEO compensation plan for the first time.
Potter acknowledged that his estimates for 2026 and 2027 fall below Wall Street consensus, citing factors like declining deliveries from certain discontinued models and reduced regulatory credit income.
However, he expressed limited concern, noting that traditional vehicle delivery metrics are expected to matter less over time as FSD subscriber growth and robotaxi deployment metrics gain prominence. On Optimus specifically, Potter suggested the humanoid robot program, combined with inference services, “arguably will be worth more than Tesla’s other businesses combined,” though the firm has not yet produced formal long-term forecasts for these segments.
Tesla shares have traded near the $400 range in recent sessions, reflecting ongoing investor focus on the company’s autonomous driving progress and expansion into robotics and AI. The Optimus project remains in early development stages, with Tesla aiming to deploy the robots initially for internal factory tasks before broader commercial applications.
This Piper Sandler analysis highlights the growing emphasis among some investors and analysts on Tesla’s long-term technology platform potential beyond its current automotive and energy businesses.
As with any forward-looking valuation, outcomes will depend on execution timelines, technological breakthroughs, regulatory approvals for autonomous systems, and market adoption of humanoid robotics—areas that carry significant uncertainty and execution risk.
The note underscores a common theme in Tesla coverage: differing views on how to quantify emerging high-growth opportunities like robotics within the company’s overall enterprise value. Investors are advised to consider their own risk tolerance and conduct thorough due diligence regarding these speculative elements.
Tesla Model Y prices just went up for the first time in two years
Elon Musk explains why he cannot be fired from SpaceX
