Tesla Posts Surprise 2Q Profit
Ming Lam July 23, 2020 4:21 AM
Thanks to selling $428 million worth of regulatory tax credits to other automakers...
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.
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