Tesla is the world’s most valuable car company, but that position depends largely on the company’s performance in the last quarter and its full-year earnings prospects are in sight, according tomedia MSPoweruser. As a result, investors will be more satisfied with the company’s success in making a profit. On Wednesday, local time, Tesla reported second-quarter results for fiscal 2020, announcing revenue of more than $6 billion for the second quarter of 2020 and a diluted net income of $0.50 per share attributable to Tesla common shareholders. That beat analysts’ expectations of $5,146 million in revenue and a loss of $0.14 per share.
The profit is not just symbolic, it has the potential to put Tesla in the S.P. 500, which is expected to push Tesla’s share price higher.
Tesla’s second-quarter net income was $104 million, compared with $451 million attributable to Tesla’s common shareholders, compared with a net loss of $198 million a year earlier, according to non-U.S. general accounting standards.
“Despite the challenging environment, our operating profit improved in the second quarter. Positive impacts include lower operating costs due to a temporary reduction in employee compensation expenses, a continuous increase in regulatory credit revenue, and $48 million in deferred revenue recognition related to the release of the FullSelf Driving (FSD) feature. These positive contributions were offset by significant costs associated with plant shutdowns and a continuous increase in non-cash SBC expenses, primarily due to the $101 million associated with the 2018 CEO Award milestone. “
Despite the challenges, Tesla managed to increase its gross margin and cash position. The results were due to the sale of 90,650 vehicles, up from 88,000 in the first quarter of 2020, and the profit was mainly due to $428 million in massive regulatory credit for their pollution-free cars, despite the new crown pandemic.
Tesla’s shares rose 7 percent after the second-quarter results to a high of $1,715.