Tesla Smashes Q2 Expectations With $104 Million Profit

Tesla Smashes Q2 Expectations With $104 Million Profit

The American automobile company Tesla reported that in the second quarter of 2020 it had net profits of 104 million dollars, which allowed it to close the first half with profits of 120 million dollars and chaining four consecutive quarters without losses.

Tesla founder Elon Musk also took advantage of a conference call with analysts and the media to announce that the manufacturer will build its new Gigafactory, for the production of batteries and vehicles, in Texas.

The Gigafactoria, which will be located near the city of Austin, will produce Tesla’s new “pickup” truck, Cybertruck, as well as Model 3 and Model Y vehicles and an electric truck known as Semi.

Musk said the plant will be located on the banks of the Colorado River and that it will be “amazing” and “an ecological paradise” that will be provided with paths for walking and cycling.

The plant will be Tesla’s second in the United States to produce vehicles, after the original one located in the Californian town of Fremont. Tesla also has an assembly plant in China and has announced the construction of its first European Gigafactory in Germany.

Tesla said that in the second quarter of the year revenue from the automobile sector totaled $ 5,179 million, 4% less than in the same period of 2019 and 1% more than in the first quarter of 2020.

The company’s total revenue in the second quarter was $ 6,036 million, 5% less than in 2019. In the first half of 2020, revenue was $ 12,021 million.

The gross operating result in the second quarter was $ 1,209 million, 111% more than in 2019. For the semester, the gross operating result totaled $ 2,160 million.

Tesla noted that it made a profit even though the Fremont plant was closed for almost half of the second quarter due to the COVID-19 pandemic.

“Our profits improved sequentially due to fundamental improvements to the operation,” Tesla said in a statement, adding that “we believe that the progress we have made in the first half of this year puts us in a successful position for the second half of 2020 “.

Following the publication of the results, the company’s shares shot up 5% and were trading above $ 1,657. A year ago, Tesla’s price was $ 260.

Tesla delivered 90,891 vehicles in the second quarter, 5% less than a year ago. Deliveries of Model 3 and Model Y were 80,277 vehicles, 3% more than in 2019. But those of Model S and Model X fell 40% to 10,614 units.