Economic activities have stopped around the globe. Many companies are posting losses in this quarter. At least, almost all the companies are expected to result in declining in sales and profit. But there are exceptions too. For example, Microsoft and Electric car specialist Tesla have posted their results recently with an increase in profit.
In the case of Tesla, the profit margin has increased by a slim margin. The production of the company has been paused in China and the US for the global novel coronavirus pandemic but the company posted earnings of $US354 million with a net profit of $US16 million that came from selling carbon emissions credits to rival car companies.
The total turnover for the company is $US5.1 billion in this quarter. According to Automotive news USA, the company has increased more than 60% of selling of carbon emissions credits from the same period last year and more than a 160% increase from the previous quarter. However, the company is not sure that if they can make a profit in the next quarter for the continuing uncertainty over starting economic activities in the upcoming months.
However, the want to ramp up the production of the Tesla Model Y compact SUV which is their latest edition. The result is commendable especially when US car giant Ford came with a result of $US2 billion loss. The company also made that prediction; the loss can be stretched to $US5 billion in the next quarter.
The good news for the industry is car production in China, the US and Europe will start with limited capacity. However, the uncertainty over full demand and production remains active. Tesla further forecasted that the company will sell 500,000 vehicles be the end of this year however market analysts think selling of new vehicles will be dropped as much as 80 percent.