Tesla in surprise profit

san francisco — Tesla reported a surprise secondquarter profit as it confirmed ambitious targets for 2020 car deliveries despite the coronavirus pandemic and announced plans for a new auto factory in Texas.

The result clears the way for the highflying company led by Elon Musk to potentially join the S&P 500. A requirement for the prestigious Wall Street index is four successive profitable quarters, which Tesla has now achieved.

The electric car maker scored profits of $104 million in the quarter ending June 30 compared with a loss of $408 million in the year-ago period. Revenues fell five per cent to $6 billion.

“I’ve never been more optimistic or excited about the future of Tesla,” Musk said on a conference call with analysts and investors. —