Cleveland, Ohio – Tesla earned $104 million during the second quarter as it continued shipments of electric vehicles (EVs) to customers, despite temporary COVID-19 shutdowns. And in an earnings call to announce the gain, CEO Elon Musk named Austin, Texas, as the site of the automaker’s second U.S. plant.
“We believe the progress we made in the first half of this year has positioned us for a successful second half of 2020,” Tesla officials said in their earnings announcement. “Production output of our existing facilities continues to improve to meet demand, and we are adding more capacity. Later this year, we will be building three factories on three continents simultaneously.”
Tesla is producing cars now in California and in Shanghai, China, with plans of adding production near Berlin, Germany, by the end of the year.
Analysts had expected Tesla to post a narrow loss in the second quarter, but Musk has been far more aggressive than traditional automakers in getting production back on line in the midst of the global Cornoavirus outbreak. During the quarter, he defied county orders to shutter any large place of employment and called workers back in March.
With four consecutive quarterly profits, the EV maker now qualifies to join the S&P 500 stock index, something that could boost its share prices as institutional investors and tracking funds buy up shares.
About the author: Robert Schoenberger is the editor of Today's Motor Vehicles and Today's eMobility and a contributor to Today's Medical Developments and Aerospace Manufacturing and Design. He has written about the automotive industry for more than 20 years at The Plain Dealer in Cleveland, Ohio; The Courier-Journal in Louisville, Kentucky; and The Clarion-Ledger in Jackson, Mississippi.