New York (CNN Business)Tesla reported stronger-than-expected second quarter, with a record net income of $1.1 billion.
It was far more than double the $438 million it made in the first quarter, and more than 10 times the net income it reported a year ago. And it answered a major criticism of investors who’ve been bearish on the stock over the strength of Tesla’s results.
Notably, Tesla didn’t depend on selling regulatory credits to other automakers to achieve its blockbuster earnings. Those credits were responsible for just $354 million in revenue in the quarter. In previous quarters, even when Tesla reported positive adjusted earnings, its net income depended on selling credits to rivals that needed to buy them to meet tougher environmental standards. Critics have long attacked Tesla for that, saying the company wasn’t making money actually selling cars.
The company’s adjusted income, which is the measure more closely watched by investors, jumped to $1.6 billion, far better than the $1.1 billion forecast by analysts. It was also up from its previous record earnings on that basis of $1.1 billion in the first quarter. Revenue of $12 billion also easily topped forecasts of $11.3 billion.
Tesla shares have been battered this year as earlier earnings reports, while strong, had fallen short of Wall Street hopes. Shares of Tesla (TSLA) rose 1% higher in after-hours trading following the report.
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