Tesla Posts Fourth Consecutive Quarterly Profit, Defying Pandemic Shutdown

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 [e-mail]

(END) Dow Jones Newswires

July 22, 2020 17:00 ET (21:00 GMT)

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