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By Neal E. Boudette, Peter Eavis and Matt Phillips
Tesla reported a $104 million gain on Wednesday, a result that analysts, who expected the electric automaker to lose cash as the coronavirus pandemic pressured the company on two fronts.
Sales for the current quarter, which ended in June, slowed as the economy closed and millions of others lost their jobs and cut spending. And for about two months, the company was forced to prevent production at its main plant in Fremont, California.
“We had to make a fourth quarter of back-to-back profits,” the company’s executive leader, Elon Musk, said in a conference call with analysts. “While the automotive industry has fallen by about 30% year-on-year, we control the accumulation of deliveries in the first part of the year.”
Tesla has started painting at a fourth car plant near Austin, Texas, Musk said, where it will produce its next pickup truck, the Cybertruck and a new semi-trailer, along with its Models 3 and Y.
Tesla’s wonderful benefit prepared him for another vital step: a imaginable inclusion in the S.P.500 index. The index is one of the highest measures of U.S. stock market functionality. More vigilanized, with more than $11 trillion in mutual budget and other investments that oppose it.
It’s for corporations with as high market price as Tesla, around $290 billion, which won’t be included in the S-P 500. But the company’s inability to generate profits has consistently made it ineligible so far. (The inclusion criteria require that the sum of the company’s fully audited profits during the last 4 quarters be positive).
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