Tesla did not disappoint Wednesday, as the automaker sealed its fourth straight quarter of profitability, putting it on the road to potentially be included in the S&P 500, which could prove lucrative for investors who own the shares.
The electric car maker earned $2.18 per share, according to the second-quarter results, besting the ($0.11) loss analysts had been expecting. Revenue also came higher than expected at $6.04 billion.
“We believe the progress we made in the first half of this year has positioned us for a successful second half of 2020," the company stated in its financials. "Production output of our existing facilities continues to improve to meet demand, and we are adding more capacity. Later this year, we will be building three factories on three continents simultaneously.”
If the S&P Index Committee decides to include Tesla in the blue-chip index, mutual funds, index funds and exchange-traded funds that mirror the S&P 500 must own a certain percentage of the stock, which creates a new flow of buyers.
The stock, which has gained over 280 percent this year, traded over the $1,600 level in the extended session on Wednesday.