Loup Ventures' Gene Munster weighs in on Tesla's earnings report

Loup Ventures' Gene Munster on Tesla's blowout earnings report. With CNBC's Melissa Lee and the Fast Money traders, Tim Seymour, Karen Finerman, Steve Grasso and Dan Nathan. Subscribe to CNBC PRO for access to investor and analyst insights on Tesla and more: https://cnb.cx/2BT2E7y

Tesla just reported its second-quarter results. Shares rose more than 4% after hours as the company beat expectations and reported its fourth straight quarter of profits.

Here’s how Elon Musk’s electric car and renewable energy business did versus analysts’ expectations, according to estimates compiled by Refinitiv.

Earnings: $2.18 (ex-items) vs. 3 cents per share, expected.
Revenue: $6.04 billion vs. $5.37 billion, expected.
Net income: $104 million (GAAP)
Tesla also reported its first full year of profitability on a GAAP basis, which means it can now be considered for inclusion on the S&P 500 index.

On the earnings call Wednesday, Musk announced that Tesla will build its next factory near Austin, Texas. The company plans to dedicate its Fremont, California, car plant to the production of Model S and Model X vehicles for all markets, and for Model 3 and Model Y production for the Western half of North America. The Texas factory, Musk said, will be used for production of the company’s Cybertruck, Semi, and Model 3 and Model Y vehicles for the Eastern half of North America.

Automotive revenue declined by 4% year-over-year for Tesla from $5.38 billion to $5.18 billion, despite the company adding a new crossover SUV to its lineup, the Model Y, and opening a new plant in Shanghai in the past year.

In the year-ago quarter, Tesla reported $111.2 million in revenue from regulatory credits. That number nearly tripled to $428 million in regulatory credits in the second quarter of 2020.

CFO Zachary Kirkhorn said that Tesla expects its regulatory credit revenue to double in 2020 relative to 2019, and to continue for some unspecified amount of time. But to achieve long-term profitability, the company is aiming to reduce the cost of vehicle production, and make more money from software over time, namely its Full Self-Driving option.

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Видео Loup Ventures' Gene Munster weighs in on Tesla's earnings report канала CNBC Television