Tesla Shares Gains 4% on Better Than Expected Q2 Earnings

Tesla shares rose by 4 percent on Thursday following a better than expected second-quarter earnings report.

The world’s leading electric car manufacturer posted $2.18 earnings per share, far better than the 3 cents per share predicted by analysts.

Revenue rose to $6.04 billion in the second quarter, also better than the $5.37 billion analysts predicted prior to the report.

The company’s net income stood at $104 million (GAAP). Making it Tesla’s first full year of profitability based on GAAP metrics, meaning it can now be included on the S & P 500 index.

Tesla has now reported four consecutive quarters of profits

During Wednesday’s earnings call, Elon Musk, the Founder and CEO, Tesla Inc, said the company will build its next factory near Austin, Texas.

He said “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.”