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Tesla Burns Shorts After Smashing Q2 Earnings

  • Earnings: $2.18 ex-items vs. 3 cents per share, expected.
  • Revenue: $6.04 billion vs. $5.37 billion, expected.
  • Net income: $104 million (GAAP)

Tesla also reported its fourth consecutive quarter of profitability on a GAAP basis, which means it can now be considered for inclusion on the S&P 500 index.

Tesla announced earnings per share of $2.18 on revenue of $6.04B. Analysts polled by Investing.com anticipated EPS of $-0.19 on revenue of $5B.

Tesla shares are up 280% from the beginning of the year , still down 11.32% from its 52 week high of $1,793.02 set on July 13. They are outperforming the Nasdaq which is up 19.32% from the start of the year.

Tesla shares gained 6% in after-hours trade following the report.

Our business has shown strong resilience during these unprecedented times. Despite the closure of our main factory in Fremont for nearly half the quarter, we posted our fourth sequential GAAP profit in Q2 2020, while generating a positive free cash flow of $418M. Our profit improved sequentially due to fundamental operational improvements. Additionally, we experienced costs associated with factory shutdowns, which were offset by actions taken during the quarter to reduce expenses. For the trailing 12 months, our GAAP operating margin reached nearly 5%. We expect our operating margin will continue to grow over time, ultimately reaching industry-leading levels. We believe the progress we made in the first half of this year has positioned us for a successful second half of 2020. The production output of our existing facilities continues to improve to meet demand, and we are adding more capacity. Later this year, we will be building three factories on three continents simultaneously. While we invest in our product roadmap, improve technology and localize production, we continue to drive cost efficiencies across the business and closely manage working capital. It is important to manage our cash diligently in order to ensure we are ready for any scenario.

Tesla – During Q2 2020 ER.

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