London Daily

Focus on the big picture.
Wednesday, Jul 23, 2025

Tesla reports its longest-ever profitable streak, topping Wall Street's expectations for the second quarter

Tesla reports its longest-ever profitable streak, topping Wall Street's expectations for the second quarter

Tesla reported a second-quarter profit, its fourth in a row, on Wednesday afternoon.
The earnings beat comes after a quarter marred by coronavirus shutdowns and macroeconomic headwinds. . Shares rose as much as 7% in after-hours trading following the report, continuing a months-long rally to record highs.
Tesla turned a profit in the second quarter, it said Wednesday, topping Wall Street's expectations for the three-month period marked by coronavirus shutdowns, cementing its longest streak of profitability in company history.

"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 in a press release. "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."

On a conference call following the release, Tesla announced Austin, Texas as the official location for its second US factory, where it will eventually build its Cybertruck and other vehicles.

"I've never been more optimistic or excited about the future of Tesla in the future of the company," CEO Elon Musk said.

Shares of Tesla, already at record highs, rose as much as 7% in late trading Wednesday following the release.

The company also disclosed $428 million worth of revenue from regulatory credits that it sells to other automakers who make far fewer electric vehicles, its highest ever for the growing segment, helping to insulate the company's balance sheet from falling vehicle prices. In total for 2020, those credits will likely total more than $1 billion, CFO Zach Kirkhorn said.

Lower overhead costs thanks to a "temporary reduction" in employee compensation also helped to fuel the quarter's success, Tesla said. That's despite an increase in capital expenditures as the company builds its third car factory near Berlin in Germany.

Analysts on the call are likely look for insight about demand trends the company is seeing at home in North America as well as in the increasingly important Chinese market. They're also sure to ask for updates on the new European factory, and for any decisions on its second US factory, which is seemingly headed for Austin, Texas.

Before the pandemic hobbled the entire auto industry, Tesla had announced plans to build up to 500,000 vehicles in 2020, something says it will still be able to do despite the ongoing difficulties. Many of Tesla's competitors have in recent months lowered their expectations because of the negative economic environment.

For investors that have piled into the stock in recent months, sealing Tesla's status as the world's most valuable automaker, the beat is likely to be taken as pure vindication. Following delivery numbers that surpassed expectation in June, the stock has hit record highs on a near weekly basis, fueled in part by speculation it could be added to the benchmark S&P 500 index after a full year of profitability.

"We continue to believe EV demand in China is starting to accelerate with Tesla competing with a number of domestic and international competitors for market share with Giga 3 remaining the linchpin of success which remains the prize that Musk and Tesla are laser focused on capturing," Dan Ives, an analyst at Wedbush, said Wednesday.
Newsletter

Related Articles

0:00
0:00
Close
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
Microsoft, US Lab to Use AI for Faster Nuclear Plant Licensing
Trump Walks Back Talk of Firing Fed Chair Jerome Powell
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Irish Tech Worker Detained 100 days by US Authorities for Overstaying Visa
Dimon Warns on Fed Independence as Trump Administration Eyes Powell’s Succession
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Jeff Bezos Considers Purchasing Condé Nast as a Wedding Gift
Ghislaine Maxwell Says She’s Ready to Testify Before Congress on Epstein’s Criminal Empire
Bal des Pompiers: A Celebration of Community and Firefighter Culture in France
FBI Chief Kash Patel Denies Resignation Speculations Amid Epstein List Controversy
Air India Pilot’s Mental Health Records Under Scrutiny
Google Secures Windsurf AI Coding Team in $2.4 Billion Licence Deal
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
South African Police Minister Suspended Amid Organised Crime Allegations
Nvidia CEO Claims Chinese Military Reluctance to Use US AI Technology
Hong Kong Advances Digital Asset Strategy to Address Economic Challenges
Australia Rules Out Pre‑commitment of Troops, Reinforces Defence Posture Amid US‑China Tensions
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
U.S. Resumes Deportations to Third Countries After Supreme Court Ruling
Excavation Begins at Site of Mass Grave for Children at Former Irish Institution
×