Tesla Beats Earnings and Revenue Estimates, Shares Rise

Tesla said it could exceed 500,000 deliveries this year, despite production disruptions. Tesla shares are up 4% after its quarterly report.

Tesla shares rose in after-hours trading after the company topped revenue and earnings estimates for the second quarter and also provided positive news about delivery projections and GAAP profits.

TheStreet's Eric Jhonsa live blogged Tesla's second-quarter earnings and call with analysts.

The electric carmaker posted sales of $6.04 billion and GAAP earnings per share of 50 cents. On average, analysts polled by FactSet were expecting $5.15 billion in sales and a GAAP loss of 82 cents per share. 

Tesla  (TSLA) - Get Report shares were up 4.9% to $1,670.80 in after-hours trading Wednesday following the release of the report. 

Tesla earlier reported 90,650 vehicle deliveries in the second quarter, which topped estimates by a wide margin. On Wednesday, the carmaker did not lower its previous delivery projections for the full year, writing in a statement that it has "the capacity installed to exceed 500,000 vehicle deliveries this year, despite recent production interruptions."

For analysis of Tesla's Q2 earnings, follow Tesla Daily on TheStreet.

Tesla added that the production ramp-up at its Shanghai factory is progressing as planned, and that it expects to deliver Model Y units built in the facility next year. Construction of its Berlin-Brandenburg factory "continues to progress," Tesla said. 

Tesla also confirmed it is building a new Gigafactory in Austin, Texas. 

In addition, Tesla reported positive free cash flow of $418 million for the quarter, compared to negative $895 million last quarter. 

The Q2 GAAP profit puts Tesla in the running for inclusion in the S&P 500 index, which requires four consecutive quarters of GAAP profits in addition to a handful of other baseline qualifications for a company to be considered, all of which Tesla has now met. 

If Tesla were added to the index, passive investors and fund managers would need to buy large amounts of shares, something which investors seem to have anticipated, driving shares sharply higher in recent months. 

However, S&P 500 committee members still wield discretion in deciding which companies to include. 

Tesla's large market cap of about $300 billion means that the index committee would need to rebalance prior to adding it. The committee rebalances the index each quarter, and its next reassessment is scheduled for the third week of September. 

Tesla's stock is one of the top performers year to date, with shares up 274% heading into earnings.