Tesla reports fourth straight quarter of profits

Tesla just reported its second-quarter results. Shares rose as high as 6% after hours as the company beat expectations and reported its fourth straight quarter of profits. 

Here's how Elon Musk's electric car and renewable energy business did, versus analysts' expectations, according to estimates compiled by Refinitiv.

• Earnings: $2.18 (ex-items) vs. 3 cents per share, expected.
• Revenue: $6.04 billion vs. $5.37 billion, expected.
• Net income: $104 million (GAAP)

Tesla also reported its first full year of profitability on a GAAP basis, which means it can now be considered for inclusion on the S&P 500 index.

Refinitiv compiled data from 16 analysts whose estimates varied widely, from losses of $2.53 per share to earnings of $1.45 per share for Tesla, and from revenue of $2.78 billion on the low-end to $6.18 billion on the high-end for the second quarter.

Automotive revenue declined by 4% year-over-year for Tesla from $5.38 billion to $5.18 billion, despite the company adding a new crossover SUV to its lineup, the Model Y, and opening a new plant in Shanghai in the past year.

In the year-ago quarter, Tesla reported $111.2 million in revenue from regulatory credits. That number nearly tripled to $428 million in regulatory credits in the second quarter of 2020.

Tesla's Full Self Driving option, an advanced driver assistance package sold for $8,000 in the U.S., enabled the company to recognize deferred revenues of $48 million this period. Tesla defers revenue from sales of its Full Self Driving system, then recognizes it over time as the company rolls out updates to the functionality.

At this time last year, Tesla's shares were trading around $260. Now, they're trading above $1,500, making the company the most valuable auto-maker in the U.S. by market cap. 

During the period ending June 30, 2020, Tesla grappled with the effects of the Covid-19 pandemic and widespread civil rights protests on its employees, customers and U.S. factory operations, especially.

The company also achieved better-than-expected second-quarter vehicle production and delivery numbers, sending Tesla's stock price soaring. In July, Tesla shares have risen more than 50% so far, adding to the stock's more than threefold increase for the year to date.

Tesla has promised its fans and shareholders a new U.S. factory (possibly based in Austin, Texas), an all-electric Tesla Semi, a million mile battery, a futuristic Cybertruck, and to have 1 million robotaxi-ready vehicles on the road by the end of 2020. However, Tesla slashed its research & development spending in the second quarter to $279 million down from $324 million a year ago.

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