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Tesla on Wednesday delivered its third consecutive quarterly profit, sending the stock up more than 7 percent in extended trading and putting Elon Musk within arm’s reach of a $750 million payday. The electric automaker reported earnings per share of $1.24, while the Street had been expecting a loss of 36 cents per share. The …
Tesla on Wednesday delivered its third consecutive quarterly profit, sending the stock up more than 7 percent in extended trading and putting Elon Musk within arm’s reach of a $750 million payday.
The electric automaker reported earnings per share of $1.24, while the Street had been expecting a loss of 36 cents per share. The company’s $5.99 billion in revenue also narrowly beat out analyst estimates of $5.90 billion.
Despite temporarily shutting down production at its Fremont, Calif. factory as well as its Shanghai Gigafactory because of the coronavirus pandemic, Tesla’s revenue grew 32 percent year-over-year.
“In Q1, we reached our highest ever revenue for a seasonally slower first quarter,” Tesla said in a statement. “Sequentially, our revenue was mainly impacted by lower deliveries, driven primarily by limitations on our ability to deliver vehicles towards the end of the quarter.”
Tesla earlier this month said that it delivered 88,400 vehicles in the quarter, beating analyst expectations by nearly 9,000 cars.
Tesla, which previously announced its goal of being cash-flow positive in 2020, reported $895 million of negative quarterly free cash flow. The company noted that capital expenditures increased as it prepared Model Y production at its Fremont and Shanghai production facilities.
Shares of Tesla were trading up 7.7 percent in extended trading, at $861.78.
With the electric-car maker’s market capitalization closing at $147 billion on Wednesday, Musk is on the verge of triggering the first milestone in his eye-watering $50 billion pay package, which could see him pocket a cool $750 million in one fell swoop.
That’s because, for Musk to claim the first payout, the automaker’s stock market value needs to hit a six-month average of $100 billion. The six-month average currently sits at $96 billion, so with Wednesday’s earnings boost, it looks poised to cross the mark in the coming days or weeks.
Once Tesla shares pass that milestone, Musk will get the option to buy 1.69 million Tesla shares at $350 a pop. Taking Tesla’s Monday closing price of nearly $800 as an example, Musk could flip his new shares for a profit of $758 million.
