Tesla Inc. on Wednesday beat analyst’s revenue estimate for the second quarter of 2020 and also posted a profit for a fourth straight quarter. The electric car manufacturer also met its car delivery target despite the disruptions caused by Covid-19 pandemic.
Tesla reported a relatively flat revenue of $6.036 billion representing a 1% rise QoQ and 5% decline YoY ($6.35 billion revenue in Q2 2019). Analysts had expected revenue of $5.37 billion, according to IBES data from Refinitiv.
The company posted a gross profit of $1.267 billion an increase of 3% QoQ and 38% YoY. Tesla net income for the period stood at $129 million with a profit of $2.18 per share.
Tesla’s total assets is valued at $38.135 billion. it has a total liability of $26.754 billion
Tesla Chief Executive Elon Musk on Tuesday according to Reuters, qualified for a payout worth an unprecedented $2.1 billion, his second jackpot since May from the electric car maker following its massive stock surge.
Tesla share price has more than trippled YTD, at the close of trade at the NYSE on Wednesday the share price stood at $1,592.33 per share whereas on 2 January 2020 the share price $430.26 per share.
On its profitability Tesla said “Our operating profit improved in Q2 despite challenging circumstances. Positive impacts included lower operating costs due to a temporary reduction in employee compensation expense, a sequential increase in regulatory credit revenue and deferred revenue recognition of $48M related to a Full Self Driving (FSD) feature release.”
Written by;
Ifunanya Ikueze
