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Following strong Q2 2020 report, Tesla stock rose. TSLA closed at $1,592.33 per share yesterday and added 4.06% to $1,657.00 after-hours.
On Wednesday, after the market closed, the electric vehicle innovator Tesla Inc (NASDAQ: TSLA) announced its Q2 2020 earnings results. The company’s financial performance exceeded analysts’ expectations. As a result, Tesla (TSLA) stock went up after the report appeared.
Analysts were quite chary in their predictions. Wall Street was expecting Tesla to announce revenue of $5.146 billion, which is less than the $5.985 billion the company reported in the first quarter. Further, Wall Street was expecting Tesla to post a loss of $0.14 per share for Q2 2020. Estimize, a crowdsourced platform that aggregates estimates from analysts, executives, fund managers, and academics, was anticipating the revenue of $5.443 billion and a small profit of $0.19 per share.
Meanwhile, Tesla’s factual revenue totaled $6.04 billion, its adjusted earnings per share made up $2.18. Tesla’s net income (GAAP) for Q2 is $104 million. Tesla’s automotive revenue declined by 4% year-over-year from $5.38 billion to $5.18 billion.
Tesla Q2 2020 earnings report was expected as never before. Judging by the data Tesla provided, the company has fulfilled all the criteria for inclusion in the popular S&P 500 index. Besides, this year, Tesla has become the most valuable automaker in the world.
Performance in Q2
In the Q2 2020 earnings report, Tesla has also commented on the production capacity at all its factories. Tesla is planning to increase the total Model 3 / Model Y capacity from 400,000 to 500,000 units per year in Fremont, California. In Shanghai, where Tesla vehicles became top-selling cars, Tesla is progressing in construction for Model Y lines, with first deliveries expected in 2021.
In addition to building the Berlin-Brandenburg gigafactory in Germany, Tesla is planning to build a factory near Austin, Texas. The company will dedicate its Fremont, California, car plant to the production of Model S and Model X vehicles for all markets, and for Model 3 and Model Y production for the Western half of North America. The Texas factory will manufacture Cybertruck, Semi, and Model 3 and Model Y vehicles for the Eastern half of North America.
Tesla Stock Up after Q2 2020 Results
Following the Q2 2020 report, Tesla stock rose. It closed at $1,592.33 per share yesterday and added 4.06% to $1,657.00 after-hours.
Tesla stock has been soaring this year due to strong deliveries and production despite the coronavirus pandemic. Shares of the automaker have surged as much as 292% this year. On July 20, it hit a new all-time high of $1643.00. And there is room for further growth, as the company is standing good chances of inclusion to S&P 500 index and may join the elite $1 trillion market cap club.