The automaker posted a net profit of $ 104 million in the second quarter while over the same period in 2019, it lost $ 408 million.
By Le Figaro with AFP
–Tesla, to the surprise of the market, made money for the fourth quarter in a row between March and June despite the closure of its California plant for several weeks and a slight decline in sales.
The electric vehicle maker specifically posted a net profit of $ 104 million in the second quarter while over the same period in 2019, Elon Musk’s group had lost $ 408 million. Earnings per share adjusted for exceptional items, the benchmark in North America, stood at $ 2.18, largely exceeding the expectations of analysts who expected a loss of 2 cents according to FactSet. Weighted down by a drop in deliveries of 5%, the group over the period saw its turnover fall by as much. But at $ 6.04 billion, the company’s sales are higher than the 5.16 billion predicted by stock specialists. Tesla attributes its surprise profit to “Essential operational improvements”. The costs associated with the closure of its factories in California and China were offset by cost-saving measures, adds the group.
Towards integration into the S&P 500
On Wall Street, the action took more than 4% in electronic trading following the close of the official session. It thus continues its momentum, Tesla having soared by more than 275% on the stock market since the beginning of the year. The fact that Tesla posted a profit this Wednesday evening for the fourth quarter in a row now opens the door to the S&P 500. Being included in this prestigious index would allow the share to be systematically included in many financial products which automatically follow its fluctuations, ETFs, and would give it even more scope.
The electric vehicle manufacturer also said on the same day that the delivery of 500,000 vehicles over the whole year remained its target, even if the latter “Has become more difficult to reach”. “We believe that the progress we made in the first half of this year has positioned us well for the second half. Production at our existing facilities continues to improve to meet demand, and we continue to build our capacity ”, stressed the group.
—
