Tesla posts robust $6bn in sales in Q2 despite the pandemic

Elon Musk-run Tesla has reported profits for the fourth straight quarter, making $6 billion in revenue and $104 million in net income in its June quarter even as the Covid-19 pandemic shut its factories.

Tesla shares were up more than 4 per cent in after-hours trading on Wednesday as the company beat Wall Street expectations.

“Our operating profit improved in Q2 despite challenging circumstances. Positive impacts included lower operating costs due to a temporary reduction in employee compensation expense, a sequential increase in regulatory credit revenue and deferred revenue recognition of $48 mllion related to a Full Self Driving (FSD) feature release,” the company said in a statement.

“These positive contributions were offset by significant costs related to factory shutdowns, as well as a sequential increase in non-cash SBC expense primarily attributable to $101 million related to 2018 CEO award milestones.”

In the year-ago quarter, Tesla reported $111.2 million in revenue from regulatory credits.

Musk also announced that the electric car maker will build its new Gigafactory near Austin, Texas.

The Palo Alto-based company delivered 90,650 vehicles in the June quarter. It achieved the feat despite its Fremont, California-based factory being out of action owing to Covid-19 lockdown for most part of the quarter.

Tesla delivered 80,050 Model 3s and Model Ys in the quarter and 10,600 of its Model S luxury sedan and Model X SUVs.

“In the second quarter, we produced over 82,000 vehicles and delivered approximately 90,650 vehicles,” Tesla said in an earlier statement.