Tesla Posts Surprise 2Q Profit

Thanks to selling $428 million worth of regulatory tax credits to other automakers...

USA (1)

Tesla (TSLA) posted a surprising fourth consecutive quarterly profit, saying earnings amounted to $104 million in the second quarter, compared to a loss of $408 million in the prior-year period. 

Against all odds - including a seven-week shutdown of its California assembly plant due to the coronavirus pandemic - the Company managed to chalk out a profit thanks to selling $428 million worth of regulatory tax credits to other automakers.

On an adjusted basis, EARINGS per share amounted to $2.18, in contrast to expectations of $0.02 per share LOSS.

Second-quarter revenue fell 4.9% on year to $6.04 billion, still higher than $5.37 billion expected.

Meanwhile, CEO Elon Musk revealed that the Company has selected a location near Austin, Texas, for its second U.S. assembly plant.

In after-marker hours, the stock jumped over 5%. 

On a Daily Chart, the stock remains on the upside following a relentless 340% up-surge since March 19.

Source: GAIN Capital, TradingView

The stock keeps riding on a bullish trend line drawn from early July.

In fact, it is shaping up a Bullish Triangle Continuation Pattern.

A break above the Overhead Resistance at $1675 would call for a challenge against $1795 - the all-time intraday high seen on July 13.  

Bullish investors should take the level of $1430 as the Key Support Level.

More from Equities

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account