Electric autonomous vehicle (EAV) maker Tesla shared its 2020 second-quarter report, Wednesday, delivering results and crushing market analysts’ expectations.
It recorded its first full year of GAAP profitability. This means the company can be considered for inclusion in the prestigious S&P 500 index.
As reported in CNBC, data by Refinitiv showed how the company fared.
It recorded earnings of $2.18 (ex-items) versus 3 cents per share. This was to be expected according to the report.
The company was able to record a revenue of $6.04 billion compared to the expected figure of $5.37 billion. Its net income was tallied at $104 million.
Elon Musk, along with the release of the report, announced that the company is planning to build another factory in Texas. The Fremont factory will focus production of Models S and X for all markets, and Models 3 and Y for the Western half of the North American market. Meanwhile, the factory to be built in Texas will produce the Cybertruck, Semi, and Models 3 and Y for the Eastern North American market.
Tesla’s automotive revenue decreased by 4% on a year-over-year basis. This is despite adding new models and opening a new Chinese plant last year.
Meanwhile, the company was able to triple its current revenue from regulatory credits. From $111.2 million in the same period last year to $428 million for this year’s second quarter. It is expected for this trend to continue over time. But to be able to attain long-term profitability, Tesla has set its goal to minimize production costs and earn more from its Full Self-Driving software. The company’s Full Self-Driving software helped the company totally $48 million of deferred revenues.
Tesla was also hailed as the most valuable carmaker in the United States with trading above $1,500. It has ballooned that big compared to just $260 the same period last year.
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