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Tesla Motors Q2 Profit Trounces Street; Shares Up 7%

tesla sep7 22jul20 lt

Shares of Tesla Motors Inc. (TSLA) jumped 7% in extended trading session on Wednesday after the luxury electric car maker reported a profit for the second quarter, while analysts expected the company to post a loss.

Palo Alto, California-based Tesla reported second-quarter profit of $104 million or $0.50 per share, compared to last year's loss of $408 million or $2.31 per share.

Excluding items, adjusted earnings for the quarter were $2.18 per share, compared to a loss of $1.12 per share last year. On average, 16 analysts polled by Thomson Reuters expected loss of $0.11 per share for the quarter.

Tesla's revenues for the quarter dropped 5% to $6.04 billion from $6.35 billion last year. Analysts had a consensus revenue estimate of $5.23 billion.

In the quarter, Tesla said it delivered 75,946 Model 3s/Y to customers, up 5% from last year and down 13% from previous quarter. Model S/X deliveries were 6,326 down 56% from last year and 59% from previous quarter.

Looking forward, Tesla said, "We have the capacity installed to exceed 500,000 vehicle deliveries this year, despite recent production interruptions. While achieving this goal has become more difficult, delivering half a million vehicles in 2020 remains our target."

TSLA closed Wednesday's trading at $1,592.33, up $23.97 or 1.53%, on the Nasdaq. The stock further gained $113.67 or 7.14% in the after-hours trade.

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