Tesla records the fourth consecutive quarter of earnings

Tesla records the fourth consecutive quarter of earnings
Tesla has just announced its second-quarter results. Stocks rose more than 4% after hours as the company exceeded expectations and posted its fourth consecutive profit.

Here's how the electric car and renewable energy of Elon Musk met analysts' expectations, according to estimates collected by Refinitive.

Tesla also announced its first full year of profitability based on generally accepted accounting principles, which means its inclusion in the S&P 500 index can now be considered.

In a profit call on Wednesday, Musk announced that Tesla will build its next plant near Austin, Texas. The company plans to dedicate its auto plant in Fremont, California, to producing Model S and Model X cars for all markets, and for Model 3 and Model Y production for the western half of North America. Musk said the Texas plant would be used to produce the North American, Cybertruck, Semi, Model 3 and Model Y cars for the eastern half.

Car revenue fell 4% year-on-year to Tesla from $ 5.38 billion to $ 5.18 billion, although the company added a new SUV to its group, the Model Y, and opened a new factory in Shanghai last year.

Last quarter, Tesla announced revenue of $ 111.2 million in regulatory credits. That number almost tripled to $ 428 million in regulatory credits in the second quarter of 2020.

CFO Zachary Kirkhorn said that Tesla expects regulatory credit revenue will double in 2020 compared to 2019, and will continue for some indefinite time. But to achieve profitability in the long run, the company aims to reduce the cost of producing cars and earn more money from programs over time, which is the option of full self-driving.

The Tesla Full Self Driving option, which is an advanced driver assistance package that was sold for $ 8,000 in the United States, enabled the company to recognize the $ 48 million in deferred revenue during this period. Tesla defers revenue from sales of its full self-driving system, then identifies it over time as the company rolls out job updates.

At this time last year, Tesla shares were trading around $ 260. Now, they trade above $ 1,500, making the company the most valuable auto maker in the U.S. by market cap.

During the period ending June 30, 2020, Tesla faced the effects of the Covid-19 pandemic and widespread civil rights protests on its employees, customers, and U.S. factory operations, in particular.

The company also achieved better than expected car production and delivery figures in the second quarter, which led to a rise in the price of Tesla share. In July, Tesla shares have risen more than 50% so far, adding to the stock more than triple the year to date.

Tesla promised its fans and shareholders a fully electric Tesla Semi company, a million mile battery, and a future Cybertruck, to have a million vehicles ready to run on a robot by the end of 2020. However, Tesla cut its R&D spending in the second quarter to $ 279 million, down From $ 324 million a year ago.

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