Tesla on Wednesday posted a second-quarter profit despite the ongoing global pandemic, sending its stock shooting up in after-hours trading volatility and clearing a hurdle that could lead to the electric carmaker's inclusion in the S&P 500 stock index.
Tesla said it earned non-adjusted net income of $104 million from April to June, or a $0.50 per share profit, marking the first time the company has posted a profit for four straight quarters, a necessary goal for it to be included in the stock index of the largest U.S. companies.
The result marks a major accomplishment for Chief Executive Elon Musk, whose mission of leading the global auto industry into an electric future has frequently been questioned by investors who doubted the viability of Tesla's business.
Overall revenue fell to $6.04 billion from $6.35 billion a year earlier. Analysts had expected revenue of $5.37 billion, according to IBES data from Refinitiv.
Tesla reported $5.18 billion in second-quarter automotive revenue, but saw its share of income from regulatory credits — payments the company receives from other carmakers to offset emissions — increase by 8% to $428 million.
The company said higher income from credits in combination with temporary employee salary cuts during the pandemic and deferred revenue from its yet to be released self-driving feature offset the cost of factory shutdowns to curb the virus.
Tesla earlier this month surprised investors by announcing it had delivered more than 90,000 vehicles in the second quarter and the company on Wednesday said it stuck to its goal of delivering at least half a million vehicles by the end of this year.