California’s Tesla posts $104m profit in pandemic-scarred Q2 despite factory shutdown

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California’s Tesla posts $104m profit in pandemic-scarred Q2 despite factory shutdown

Late on Wednesday, Tesla Inc., the Palo Alto, CA-based e-vehicle industry pioneer, had reported a $104 million in net profit over the second quarter of the year that ended on June 30 despite a seven-week long pandemic-led factory shutdown at its US assembling plants, paving the way towards its inclusion into the S&P 500 index of corporate titans.

In point of fact, Tesla Inc.’s surprising gain over the pandemic-scarred second quarter of the year came forth days after the e-vehicle industry mogul had beaten Wall St.’s forecasts of its deliveries, laying the framework for the company’s fourth straight quarter of gains.

In tandem, Tesla Inc.’s robust quarterly profit on Q2, 2020, was brought into light as the e-vehicle maker’s strident approach towards cost cuts and deliveries had offset the losses stemmed off the pandemic-driven factory shutdowns, eventually sending its stocks 6 per cent higher in the post-market trading.

Tesla reports $104 million in net earnings on April to June quarter

In factuality, Tesla Inc.’s quarterly result came as a landmark accomplishment for the e-vehicle behemoth’s boss Elon Musk, whose role as a leader to transform the global automotive industry into an electric future had been questioned frequently by a number of investors and analysts.

Aside from that, according to Tesla Inc.’s Q2, 2020, quarterly result, the company had reported a $5.18 billion in Q2 automotive revenue, however, Tesla’s Q2 revenue fell to $6.05 billion compared to a figure of $6.35 billion on a year-on-year basis that had beaten an analysts’ forecast of $5.37 billion in revenues, data from Factset had revealed.

Concomitantly, speaking in a post-earnings conference call with the reporters, Tesla Chief Elon Musk was quoted saying that the e-vehicle industry titan would build a new US production line in the US state of Texas’ Travis county adding that the new factory would manufacture Model 3 and Model Y alongside a new semi-truck, named as Tesla Semi, and Tesla Inc.’s futuristic Cybertruck, for the eastern part of the United States.

Besides followed by the release of its upbeat quarterly earnings’ report, Nasdaq-listed stocks of Tesla Inc. had surged as much as 6 per cent in the post-market trading after rounding off the day 1.53 per cent higher to $1,592.33.