Tesla, a leading automotive brand which is accelerating the world's transition to sustainable energy with electric cars, solar panels and integrated renewable energy solutions it is recently announced to have over a million connected vehicles world wide.And now the EV major revealed a shocking profit of USD 16 million in the Q1 of 2020 inspite of problems in productions due to COVID-19 constraints.Tesla shares rose more than 9 per cent after the company posted Q 1 profit.

"This is the first time we have achieved positive GAAP net income in a seasonally weak first quarter," Tesla CEO Elon Musk said

He added, "Even with all the challenges, we achieved a 20 per cent automotive gross margin, excluding regulatory credits while ramping two major products.And we came to a conclusion that the right move was actually to continue to expand rapidly, continue to invest in the future and in new technologies, even though it is risky,”

“COVID-19 pandemic has caused the company to look closely at its cost structure and to be more efficient as a company,” he stated. “And we've talked to some of our key investors, and they support that approach as well. So I think that there's clearly an uncertain future ahead. It's a bit of a bumpy road. But I think the long-term prospects are extremely good."

Tesla's revenue in first quarter 2020 reached USD5.9 billion, an increase of nearly USD1.5 billion a year ago. The company ended the quarter with USD 8.1 billion of cash. The company stated that the volume growth in the Gigafactory Shanghai led to a material improvement in margins of locally made Model 3 vehicles.The Model Y also contributed to profits, Tesla said, adding that it represented the first time in its history that a new product has been profitable in its first quarter.

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