London Daily

Focus on the big picture.
Sunday, Sep 20, 2026

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
Ed Sheeran Tour Faces Backlash After Macklemore Is Removed Over Pro-Palestinian Remarks
Vandalism of Traffic Cameras Intensifies Across Parts of England
Nearly 300 Evacuated as Fire Hits Grand Burstin Hotel in Folkestone
King Charles Warns AI Executives About Risks From Uncontrolled Technology
Church of England Apologises for Role in Historical Forced Adoption Practices
UK Debate Over Online Speech Intensifies After Arrest Figures Draw Scrutiny
Oxfordshire Village Holds Symbolic Independence Vote Over Asylum Accommodation Plan
Nigel Farage and Richard Tice Sue National Crime Agency Over Alleged Banking Data Leaks
Apple Introduces Stricter Age Checks for UK Accounts
BBC Cash Reserves Fall 66% to £125 Million as Broadcaster Restructures
McLaren Announces £500 Million UK Investment and Plans 1,000 Jobs
Green Party Wins Historic Gorton and Denton By-Election as Labour Falls to Third
Burnham Government Prepares October Budget Under Growing Fiscal Pressure
UK Energy Suppliers Pull Fixed-Price Deals as Wholesale Markets Turn More Volatile
Bank of England Holds Rates at 3.75% as Middle East Energy Shock Raises Inflation Risks
Addison Lee Founder Loses £20 Million UK Tax Tribunal Case
BrewDog Creditors Face Losses on About £190 Million of Debt
Harrods Seeks to Recover Abuse Compensation Costs From Mohamed Al Fayed’s Estate
Ed Davey Targets Reform UK as Liberal Democrat Conference Opens
Great Britain Retail Sales Rise 0.5% in August
NHS England Approves Life-Extending Treatment for Incurable Breast Cancer
Proposals to Limit NHS ADHD Diagnoses Draw Criticism From Patient Groups
Resolution Foundation Warns of Housing Cost Crunch for Low-Income UK Families
BBC Cash Reserves Fall to Decade Low as Annual Deficit Reaches £121 Million
Millisecond Software Error Triggered Major UK Air Traffic Control Disruption
Twenty Women Underwent Unnecessary Mastectomies During NHS Cancer Care
Sensitive UK Police Data Found Vulnerable to Access by Foreign Actors
British Steel Faces Renewed Pressure for a Long-Term Financial Plan
MPs Urge Government to End Thames Water Restructuring Talks With U.S. Hedge Funds
Andy Burnham Warns of Difficult UK Budget Choices as Inflation Returns to 3.1%
England Tightens School Food Standards With Restrictions on Deep-Fried and High-Sugar Foods
Oxfordshire Village Votes Symbolically to Leave UK Over Proposed Asylum Centre
Michael Marra Elected Leader of Scottish Labour
BBC Cash Reserves Fall Sharply as Financial Pressures Mount
George Osborne Calls for UK to Rejoin EU Customs Union
UK Explores Joining Canada-Led Global Defence Bank
Thirlwall Inquiry Highlights Management Failures Surrounding Lucy Letby Crimes
Parliamentary Committee Calls for New UK Law to Address AI Risks to Human Rights
UK Considers Giving Regional Mayors Greater Oversight of Water Companies
UK Opposition Presses Burnham for Stronger Response to Russian Security Threats
Reform UK Faces Scrutiny Over £72 Million in Donations as Political Finance Rules Tighten
Millisecond Software Failure Behind UK Air-Traffic Outage That Cancelled More Than 2,000 Flights
Bank of England Holds Interest Rate at 3.75% as Energy Prices Complicate Inflation Outlook
Burnham Warns of Difficult Choices in October Budget as UK Inflation Rises to 3.1%
Addison Lee Founder Loses £20.5 Million Non-Domicile Tax Case
BrewDog Creditors Face Heavy Losses After Collapse
Thirteenth Metropolitan Police Officer Dismissed Over Charing Cross Conduct
Oxfordshire Village Votes Symbolically to Leave UK Over Asylum Accommodation Plan
NHS Approves Life-Extending Treatment for Women With Incurable Breast Cancer
Software Defect Blamed for Major UK Air Traffic Disruption
×