Tesla Inc. on Wednesday reported second-quarter net income of $104 million, marking its first string of four-consecutive quarterly profits, in spite of the ongoing coronavirus pandemic.
While revenue dropped 5 percent year over year to $6 billion, the electric vehicle maker was aided by $428 million in regulatory credits sold to competitors, nearly quadrupling from the same period a year ago and up 21 percent from last quarter.
Automotive revenue fell 4 percent to $5.2 billion. The company's automotive margin topped 25 percent for the second straight quarter.
Tesla delivered 90,891 vehicles in the quarter, down 5 percent from the same period a year ago. Deliveries of the Model 3 sedan and Model Y crossover totaled 80,277, a 3 percent year-over-year gain. Model Y deliveries began in mid-March. Model S and X deliveries fell 40 percent to 10,614.
"Our business has shown strong resilience during these unprecedented times," Tesla said in a statement. "We believe the progress we made in the first half of this year has positioned us for a successful second half of 2020. 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."
Despite the help from regulatory credits, lowering operating costs due to a temporary reduction in employee compensation and deferred revenue recognition related to its future self-driving system, Tesla said it was hit in the quarter by factory shutdowns and a $101 million award to CEO Elon Musk that was part of a compensation package approved in 2018.
Musk also said Wednesday the automaker has selected Texas for its next gigafactory location. The site outside of Austin will be open to the public and will be an “ecological paradise,” Musk said. The plant will build Tesla’s Cybertruck pickup and Model Y crossover
The automaker's stock, which has been on a recent tear, surged in after-hours trading to $1,663, up 4.4 percent.
