Daily Management Review

Tesla ends 4th consecutive quarter with a profit


American manufacturer of electric vehicles and solar panels Tesla Inc. in April-June unexpectedly made a profit for the fourth quarter in a row, and its revenue exceeded experts' expectations.

According to a press release, the company reported second-quarter net income of $ 104 million, or 50 cents per share, compared with a loss of $ 408 million, or $ 2.31 per share, in the same period last year. Earnings excluding one-time income and expenses were $ 2.18 per share versus a loss of $ 1.12 per share.

Revenue decreased by 5%, to $ 6.04 billion from $ 6.4 billion a year earlier. Analysts polled by FactSet, on average, had forecast an adjusted loss of 2 cents per share on $ 5.15 billion in revenue.

Tesla's progress in the first half has prepared the company for a successful second half of 2020, according to a message to investors posted on its website. "The volume of production at the existing plants continues to improve to meet the growing demand, and we are increasing capacity," it also notes.

Tesla did not provide a forecast for the current year, saying it remains difficult to make assumptions about possible disruptions and changes in consumer sentiment in the second half of the year. However, the company has confirmed that its target is to sell more than 500,000 vehicles in 2020.

Tesla's strong second-quarter performance increases the likelihood of inclusion in the Standard & Poor's 500 stock index, MarketWatch reported.

In early July, Tesla reported that in the second quarter it produced 82,272 thousand electric vehicles, and deliveries amounted to 90,650 thousand.

The company's stock jumped more than 5% in additional trading on Wednesday following the release of the financials. Tesla's capitalization has soared by 280% since the beginning of this year. In comparison, the S&P 500 gained only 1% over this period, while the Dow Jones Industrial Average was down about 6%.

source: dowjones.com