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.
SpaceX stock did the opposite of what most of Wall Street expected this week, when the day designed to be its most dangerous turned into a rally, and the rally kept going.
Thursday marked the first major lockup expiration since SpaceX’s June IPO, making roughly 911.5 million insider held shares eligible to trade for the first time, more than doubling the company’s public float. Analysts and short sellers had spent weeks bracing for a flood of selling, especially after the stock fell 13 percent following its first earnings report as a public company on Tuesday. Instead, shares rose 6.1 percent Thursday to close at $114.92, and by Friday they were trading near $129, up more than another 12 percent on the day.
SpaceX shorts get warned by Musk ally, echoing Tesla’s early struggles
The setup made the outcome notable. Short interest had climbed to roughly 34 percent of the float heading into earnings, among the highest of any large cap stock, with about 95 percent of available shares to borrow already on loan. CEO Elon Musk warned short sellers twice in the weeks before the lockup, writing on X that “the survival probability of firms who maintain a significant short position in SpaceX over time is very low,” then following up on the morning of earnings with “I try to warn them, but they just double down.”
When the newly unlocked shares hit the market and the selloff never showed up, some of that short position appears to have started unwinding. TipRanks reported that options activity shifted toward bullish strategies like put selling and risk reversals following the rally, with roughly $600 million in options premium trading Thursday alone. Retail buyers also stepped in during the earnings dip, according to Vanda Research.
The fundamentals behind the stock have not changed much in a week. SpaceX’s revenue nearly doubled year over year to $7.8 billion, with Starlink subscribers doubling to 12 million and the company’s AI segment growing 247 percent. What spooked investors on Tuesday was the spending side. Capital expenditures jumped to more than $18 billion for the quarter, up from $2.8 billion a year earlier, with AI investment alone rising from $749 million to $15.8 billion. Wall Street remains split on whether that spending is building infrastructure SpaceX needs or outrunning what the business can currently support, a debate Teslarati has tracked since shares first came under pressure.
None of that resolves the bigger question hanging over the stock. Thursday’s release was only the first of nine staggered lockup tranches, with roughly $800 billion worth of additional shares scheduled to become eligible through October, and Musk’s own stake stays locked until next June. If this week is any indication, the market is treating that supply as something it can absorb rather than something to fear, at least for now.
-
Cybertruck
Tesla Cybertruck production snaps back after ugly supplier fight
Cybertrucks are piling up again at Giga Texas after Tesla’s court win against a parts supplier.
Cybertruck production at Giga Texas is showing its first visible recovery since Tesla sued a supplier last month over withheld manufacturing tooling.
Aerial observer Joe Tegtmeyer flew over the Austin factory Wednesday morning and counted roughly 100 or more Cybertrucks filling the outbound lot, a sharp jump from the thin numbers seen in recent weeks. The flyover came a day after a judge granted Tesla a temporary restraining order against Angstrom Automotive Group, the parts supplier at the center of the dispute.
Tesla filed an emergency lawsuit in late July after Angstrom told the automaker it planned to close the Troy, Texas facility where Tesla’s die-cast tools, trim dies and other Cybertruck stamping equipment were housed. According to Tesla’s complaint, a shipment of 700 finished parts never left the building, and when Tesla sent representatives to retrieve its equipment, accompanied by law enforcement, they were turned away. Angstrom allegedly then asked for an extra $250,000 a week to keep operating, which Tesla’s filing described as holding its own property for ransom.
TESLA: U.S. District Judge Christopher R. Wolfe of the U.S. District Court for the Western District of Texas, Waco Division granted Tesla a Temporary Restraining Order and Writ of Replevin in its dispute with Angstrom Automotive (Case No. 6:26-cv-00477).
The order authorizes… https://t.co/E1DKcQSxMn pic.twitter.com/LR8aAiV2Og
— S.E. Robinson, Jr. (@SERobinsonJr) August 5, 2026
-
The restraining order gives Tesla immediate right of entry to Angstrom’s facility to recover the tooling. It is temporary, with a fuller hearing still to come, but the speed of Wednesday’s rebound suggests the Angstrom shortage was indeed the main bottleneck limiting Cybertruck output. Outbound lot counts are an imperfect measure of actual production, since finished trucks can sit for days before shipping, but a lot that full after a lean stretch is a meaningful signal.
Cybertruck output at Giga Texas has fluctuated all year as Tesla worked through supply issues and introduced new trims, including a cheaper Dual Motor AWD version that drew strong early demand.
Venture capitalist Chamath Palihapitiya has cautioned investors shorting SpaceX shares, drawing a direct parallel to the intense short-selling pressure Tesla faced in its early public years.
Responding to reports of elevated short interest in the newly public rocket, satellite, and AI company, Palihapitiya noted that similar dynamics played out with Tesla, where aggressive short sellers ultimately “went broke.”
SpaceX (NASDAQ: SPCX) went public on June 12, 2026, in the largest IPO on record, pricing at $135 per share. Shares quickly surged to an all-time high of $225.64 just days later, briefly implying a valuation exceeding $2 trillion. The stock has since retreated sharply amid valuation concerns, lockup expiration fears, and broader market dynamics.
By early August, it traded near $108–$125, representing a roughly 50 percent decline from the peak and bringing the market capitalization closer to the $1.5–1.7 trillion range. On August 4, shares closed up more than 9 percent at $125.33 ahead of earnings before facing pressure in after-hours and premarket trading.
Short interest has climbed dramatically. According to S3 Partners data widely cited in market reports, short positions reached approximately 219.3 million shares by late July, about 34 percent of the limited public float of roughly 640 million shares, and represented a notional value of around $24.6 billion.
Utilization of shares available to borrow hit 95 percent, with borrow fees rising. This level of shorting exceeded the dollar value of short bets against Tesla at the time and built rapidly ahead of two catalysts: the company’s first post-IPO earnings and an August 6 lockup expiration that could free up to 911.5 million additional shares.
-
CEO Elon Musk has issued warnings of his own. In mid-July, as short interest approached one-third of the float, he posted that “the survival probability of firms who maintain a significant short position in SpaceX over time is very low,” reiterating his view that the company could ultimately be worth more than Earth if it achieves its goals.
On August 4, just before earnings, Musk responded to the latest short-interest data by saying, “I try to warn them, but they just double down.”
SpaceX delivered its first quarterly results as a public company after the close on August 4. Second-quarter revenue rose 92 percent year-over-year to $7.8 billion, beating consensus estimates near $6.8–6.9 billion.
The net loss narrowed to $541 million, or 9 cents per share, better than the roughly 23–24 cent loss expected. Starlink/connectivity contributed about $4.3 billion (up 66 percent), while the AI business generated $2.6 billion (up roughly 250 percent). Capital expenditures were heavy at $18.4 billion, largely tied to AI infrastructure. Management projected a $100 billion annualized revenue run rate by year-end 2026 and outlined a path toward $1 trillion in annual revenue by 2030.
The combination of Chamath’s historical reminder, Musk’s repeated alerts, and the company’s ambitious growth targets underscores the high-stakes debate surrounding SPCX. Short sellers are positioned for near-term supply pressure from the lockup, while long-term bulls point to Starlink scale, Starship progress, and AI compute expansion as reasons the bears may ultimately face the same fate as many early Tesla skeptics.
The Boring Company’s newest tunnel vehicle runs on Tesla parts and no one is driving it
Elon Musk and SpaceX shrugs off the trading day Wall Street feared most
