There has been much speculation as to whether or not the lockdown cost Tesla its fourth profitable quarter. Now we know that it did not. Ahead of their earnings call this evening, the company posted its financial results online.
Expectations were pointing at a small lose, of $0.14 a share, and total revenue of $5.146 billion. However Tesla flew right past those figures by making an impressive $6 billion in revenue and profiting $0.50 a share.
Now it looks like they qualify for inclusion in the S&P500, and their stock will likely reflect that. In after-market trading TSLA has gone up a couple hundred dollars a share at the time of writing. The company’s shareholder letter went into more detail on the net profit.
Our operating profit improved in Q2 despite challenging circumstances. Positive impacts included lower operating costs due to a temporary reduction in employee compensation expense, a sequential increase in regulatory credit revenue and deferred revenue recognition of $48M related to a Full Self Driving (FSD) feature release. These positive contributions were offset by significant costs related to factory shutdowns, as well as a sequential increase in non-cash SBC expense primarily attributable to $101M related to 2018 CEO award milestones.
As Tesla’s margins continue to increase, and their factories start popping up around the globe, this really marks a huge milestone for them. Of course there will be noted caveats, like how Tesla made almost half a billion off of regulatory credits.
Haters gonna hate, Tesla to the moon baby!