- Tesla shares rose as much as 5.8% in pre-market trading on Wednesday after the company posted fourth consecutive quarter earnings.
- Elon Musk’s electric car company reported $ 104 million in net revenue, a big improvement from its $ 408 million loss in the second quarter of 2019.
- Tesla is now eligible for inclusion in the S&P 500, which promises to expand its shareholder base.
- Musk also announced that Tesla will build its fourth American factory in Austin, Texas.
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Shares in Tesla rose as much as 5.8% in pre-market operations after the group posted its fourth consecutive quarterly profit for the first time.
Elon Musk’s electric car company reported net income of $ 104 million for the three months through June 30, a sharp change from its $ 408 million net loss in the second quarter of 2019.
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Its auto revenue fell 4% yoy to less than $ 5.2 billion, as the coronavirus pandemic weighed on auto sales. However, that was more than offset by $ 428 million in revenue from the sale of regulatory loans, compared to $ 111 million in the same period last year.
Tesla’s four profitable quarters in a row make it eligible for inclusion in the S&P 500. Joining the benchmark promises to expand its shareholder base given the myriad of follow-up funds and institutional investors seeking exposure to it.
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The group’s share price has more than tripled this year, and traded near its all-time high at the close of Wednesday.
Its market capitalization approaches $ 300 billion, dwarfing the combined value of the “Big Three” US automakers – GM, Ford, Chrysler – and comfortably outperforming Volkswagen and Toyota, the largest automakers in the world. cars from Europe and Asia, respectively.
Musk also announced Wednesday that his company will build its fourth U.S. factory near Austin, Texas. It will manufacture Cybertrucks and Tesla Semis at the facility, as well as Model Y and Model 3 cars for East Coast customers, he added.
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