Tesla on Wednesday reported revenue of $6.04 billion, compared to 6.35 billion the year before, although the number surpassed analyst expectations.
“Our business has shown strong resilience during these unprecedented times,” the company said on its investor relations page. “Despite the closure of our main factory in Fremont for nearly half the quarter, we posted our fourth sequential GAAP profit in Q2 2020, while generating positive free cash flow of $418M. “
“In Q2, total revenues remained relatively flat QoQ. The positive impact of higher vehicle deliveries, higher regulatory credit revenue and higher energy generation and storage revenue was somewhat offset by lower vehicle average selling price (ASP) and lower services and other revenue,” the company added.
Tesla reported a $104 million GAAP net income, bringing it four straight quarters of sequential profitability.
Also in the report, Tesla said that it has selected the site for its next U.S. gigafactory, which is widely expected to be in Austin, Tex, while Model Y and Model 3 production rates “continue to increase.
“We believe the progress we made in the first half of this year has positioned us for a successful second half of 2020,” the company said. “Production output of our existing facilities continues to improve to meet demand, and we are adding more capacity. Later this year, we will be building three factories on three continents simultaneously.”
Wall Street, per CNBC, had predicted earnings per share for Tesla this quarter of of $0.03, and revenue of $5.37 billion.
The continued strong performance has increased speculation that Tesla will be added to the S&P 500.
Tesla’s stock has increased more than 4,000 percent since it debuted a decade ago, and it recently took over as the world’s most valuable car company. On the other hand, one U.K.-based advisory firm recently urged Tesla to oust Musk from the company’s board, due to his Twitter behavior and other factors.
Stephen Silver, a technology writer for The National Interest, is a journalist, essayist and film critic, who is also a contributor to Philly Voice, Philadelphia Weekly, the Jewish Telegraphic Agency, Living Life Fearless, Backstage magazine, Broad Street Review and Splice Today. The co-founder of the Philadelphia Film Critics Circle, Stephen lives in suburban Philadelphia with his wife and two sons. Follow him on Twitter at @StephenSilver.