Friday, Aug 07, 2020 | Last Update : 03:26 PM IST

136th Day Of Lockdown

Maharashtra47977931637516792 Tamil Nadu2791442210874571 Andhra Pradesh1967891128701753 Karnataka158254802812897 Delhi1415311271244059 Uttar Pradesh108974634021918 West Bengal86754610231902 Telangana7525753239601 Gujarat65704485612529 Bihar6203140760349 Assam4816233429115 Rajasthan4667932832732 Haryana3779631226448 Odisha3768124483258 Madhya Pradesh3508225414912 Kerala279561629988 Jammu and Kashmir2239614856417 Punjab1901512491462 Jharkhand140705199129 Chhatisgarh10109761369 Uttarakhand8008484795 Goa7075511460 Tripura5520367528 Puducherry4147253758 Manipur301818147 Himachal Pradesh2879171013 Nagaland24056594 Arunachal Pradesh179011053 Chandigarh120671520 Meghalaya9173305 Sikkim7832971 Mizoram5022820
  Business   Autos  23 Jul 2020  Tesla makes $104 million surprise profit despite factory shutdown

Tesla makes $104 million surprise profit despite factory shutdown

AP
Published : Jul 23, 2020, 4:02 pm IST
Updated : Jul 23, 2020, 4:13 pm IST

Musk also said he’s confident about rolling out full self-driving technology by the end of the year

  Tesla overcame a seven-week pandemic-related shutdown at its California assembly plant to post a surprising $104 million net profit for the second quarter. (AFP Photo)
  Tesla overcame a seven-week pandemic-related shutdown at its California assembly plant to post a surprising $104 million net profit for the second quarter. (AFP Photo)

DETROIT: Tesla overcame a seven-week pandemic-related shutdown at its California assembly plant to post a surprising $104 million net profit for the second quarter.

It was the electric car and solar panel maker’s fourth-straight profitable quarter, qualifying it to be included in the S&P 500 index of corporate titans. That decision will be made later.

 

Local government restrictions forced Tesla to close its only U.S. assembly factory in Fremont, California, from March 23 to May 11. Even with no production, the company paid roughly 10,000 workers for part of the shutdown and Tesla continued health care and other benefits.

The profit, compared with a $408 million loss a year ago, pushed Tesla’s shares up 5.7% to 1,682.99 in after-hours trading Wednesday.

But the company likely would have lost money without $428 million it earned from selling electric vehicle credits to other automakers so they can meet government fuel economy and pollution regulations.

Chief Financial Officer Zachary Kirkhorn said he expects money from the credits to double this year over the $594 million the company made in 2019, but said Tesla is not managing its business assuming that credits will contribute significantly in the future. The company is counting on manufacturing efficiencies to increase profits, he said.

 

Also Wednesday, Tesla said it has picked the Austin, Texas, area as the site for its second U.S. assembly plant. Austin was the front runner, but Tulsa, Oklahoma, was a possibility.

On a conference call with analysts and investors, CEO Elon Musk said that sometime in the future, Tesla will build a compact vehicle and a higher-capacity passenger vehicle, but he didn’t give a time frame. He said Tesla is on its way to making vehicles more affordable through manufacturing and design efficiencies.

“The thing that bugs me the most about where we are right now is that our cars are not affordable enough,” he said.

Musk also said he’s confident about rolling out full self-driving technology by the end of the year and said it already works well during his drives to work. The company based in Palo Alto, California, has updated its Autopilot driver-assist software to recognize stop signs and is working on navigating intersections and city streets, he said.

 

Tags: tesla, shutdown, california plant, elon musk