Tesla Posts Fourth Consecutive Quarterly Profit, Defying Pandemic Shutdown
23 July 2020 - 7:15AM
Dow Jones News
By Tim Higgins
Tesla Inc., for the first time in its 17-year history, reported
a fourth-consecutive profitable quarter, a milestone that is sure
to bolster Chief Executive Elon Musk's pitch that he can usher in
the age of fully electric cars.
Defying the global coronavirus pandemic, threat of extended
economic recession and Wall Street analysts who expected a loss,
the Silicon Valley auto maker found a way, helped by the sale of
regulatory tax credits, to eke out a $104 million profit in the
second quarter.
On an adjusted basis, excluding stock-based compensation, the
company said Wednesday it made $2.18 a share. Analysts surveyed by
FactSet, on average, expected an adjusted loss of 2 cents a share
earlier in the day, an estimate that narrowed from a loss of 14
cents on Monday and a much larger projected loss in May.
The company was mute on whether it believes Mr. Musk's
pre-pandemic goal of increasing deliveries this year by more than
36% remains on track, something it wasn't willing to say in late
April when he was railing against California authorities for
keeping his lone U.S. assembly factory outside of San Francisco
closed as part of an effort to stop the spread of Covid-19.
"Although we have successfully ramped vehicle production back to
prior levels, it remains difficult to predict whether there will be
further operational interruptions or how global consumer sentiment
will evolve in the second half of 2020," the company said. "We will
continue to update our outlook as necessary."
The achievement of four cumulative quarters of profitability
means Tesla can now be considered for inclusion in the S&P 500
index. If included, large index funds would likely race to include
the shares among their holdings.
Write to Tim Higgins at Tim.Higgins@WSJ.com
(END) Dow Jones Newswires
July 22, 2020 17:00 ET (21:00 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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