Rivian R1T electric truck
Electric vehicle startup Rivian on Friday said it closed a $2.5 billion investment round led by funds and accounts advised by T. Rowe Price Associates as the company moves closer to production of an all-electric pickup and SUV.
Other participants in the round included Soros Fund Management, Coatue, Fidelity Management and Research Company as well as Baron Capital Group. Existing shareholders Amazon and funds managed by BlackRock also participated.
The funding comes as the company continues to renovate a former Mitsubishi plant in Normal, Illinoisto produce its vehicles as well as a line of EV vans, which Amazon pre-ordered 100,000 of last year for its delivery fleet.
In June, CNBC obtained correspondence regarding a funding round for Rivian, saying the company was raising at least $2 billion with a pre-money valuation at or above $8 billion. At the time, Rivian denied they were raising money.
“We often receive unsolicited investment offers from institutions and individual investors,” Amy Mast, public relations director at Rivian, said in a June 9 email. “We have heard this rumor ourselves – it is categorically false. Publishing this would be spreading a rumor that is simply not true.”
Mast declined to comment on her remarks Friday.
More recently, CEO and founder Robert “R.J.” Scaringe told CNBC the company was “open” to additional financing to help support its “aggressive growth plans.”
The would-be Tesla competitor raised $2.85 billion last year from Amazon, Cox Automotive, T. Rowe Price Associates and Ford Motor, among others. Rivian raised $1.3 billion in December, its most recent funding round and biggest capital raise last year.
Despite the coronavirus and ongoing recession, investors have shown high interest in electric automakers. Shares of Nikola Motor, which plans to make electric trucks, surged last month after going public through a reverse merger last month. Its market valuation is in-line with Ford, even though it doesn’t expect to generate revenue until 2021.
Rivian is expected to be among the first, if not the first, to bring an all-electric pickup to market early to mid- next year – potentially years ahead of its competitors, including Nikola, Tesla and General Motors.
Rivian is taking pre-orders for its all-electric pickup and SUV that include $1,000 refundable deposits.
Rivian, like Tesla, plans to sell its vehicles directly to consumers, bypassing franchised dealers that are used by “traditional” automakers such as GM and Ford.
Take a look at some of the biggest movers in the premarket:
Novavax (NVAX) – Novavax was awarded $1.6 billion in funding from “Operation Warp Speed,” the government program aimed at speeding the development and delivery of a Covid-19 vaccine. The money will be used to complete late-stage studies, establish large-scale manufacturing, and deliver 100 million doses as early as late 2020.
Regeneron (REGN) – The drugmaker was also the recipient of “Operation Warp Speed” funding, receiving $450 million for the development and production of its Covid-19 anti-viral antibody cocktail. The company said initial doses could be ready as soon as the end of the summer.
Quest Diagnostics (DGX) – The medical lab operator said turnaround time for Covid-19 test results has lengthened to four to six days for non-priority patients, as demand for its molecular diagnostic tests continues to surge.
Humana (HUM), Walgreens (WBA), McKesson (MCK) – These companies are partnering in an ad campaign encouraging people to return to medical offices for appointments, trying to allay fears of exposure to the coronavirus from a doctor’s office visit.
Vivint Solar (VSLR) – Vivint agreed to be bought by solar installation company Sunrun (RUN) for $1.46 billion in stock. Vivint Solar shareholders will receive 0.55 Sunrun shares for each share they now hold, representing a premium of 10.4%. Vivint is majority-owned by Blackstone (BX).
Occidental Petroleum (OXY) – The state of Wyoming will bid on land and minerals properties owned by Occidental, following approval by Wyoming’s State Loan and Investment Board. Occidental is selling assets to pare down debt incurred in last year’s $38 billion acquisition of Anadarko Petroleum.
Sirius XM (SIRI) – Sirius XM is near a deal to buy E.W. Scripps (SSP) podcasting unit Stitcher, according to people familiar with the matter who spoke to The Wall Street Journal. The satellite radio operator would reportedly pay around $300 million for Stitcher.
Square (SQ) – Square remains on watch after closing at a record high Monday, with the mobile payments company’s shares having more than tripled from their March low. The pandemic has prompted more consumers to use Square’s payment options.
Nvidia (NVDA) – Bank of America Securities raised its price target on the graphics chipmaker’s stock to a Street high of $460 per share from $420 a share, pointing to a robust gaming market ahead of new console launches from both Microsoft (MSFT) and Sony (SNE).
CBOE Holdings (CBOE) – CBOE was downgraded to “neutral” from “overweight” at Piper Sandler, which made the move following the exchange operator’s report on June trading volumes.
Tesla (TSLA) – The automaker’s stock is on watch following a fourth straight record close on Monday. Tesla is up nearly 43% over the past five sessions.
Red Rock Resorts (RRR) – Red Rock said company President Richard Haskins died last weekend in a watercraft accident. The Las Vegas casino operator said it would announce a succession plan in the coming days.
Teladoc Health (TDOC) – The stock was rated “overweight” in new coverage at Stephens, which said valuation is still attractive despite a more than 150% surge this year. Stephens bases its call on a large and still growing market for remote video medical visits.
Endo International (ENDP) – The Food and Drug Administration approved Endo’s Qwo treatment for moderate to severe cellulite in adult women. Endo said Qwo is the first injectable treatment for cellulite to receive FDA approval.
Take a look at some of the biggest movers in the premarket:
Becton Dickinson (BDX) – The medical products maker said the Food and Drug Administration has granted emergency use authorization for its rapid Covid-19 test that can deliver results in 15 minutes. The test can be used with the company’s “BD Veritor PLUS” portable analysis system.
Dominion Energy (D) – Dominion sold its natural gas transmission and storage network to Warren Buffett’s Berkshire Hathaway (BRK.B) for $4 billion, with Berkshire also assuming $5.7 billion in debt. Separately, Dominion and Duke Energy (DUK) abandoned their $8 billion Atlantic Coast pipeline project after long legal delays caused the cost of the project to nearly double.
Uber Technologies (UBER) – Uber has agreed on a deal to buy food delivery service Postmates in a $2.65 billion stock deal, according to multiple reports. Uber had been in talks earlier this year with Grubhub (GRUB) about a possible takeover deal, but those talks were unsuccessful.
Qiagen (QGEN) – A top Qiagen shareholder told Reuters that the takeover deal agreed to by the medical products maker in March no longer makes sense unless that bid is increased substantially. Qiagen agreed to be bought by Thermo Fisher Scientific (TMO) for $11.5 billion in March, but demand for Qiagen’s coronavirus testing products has surged since then.
Fiat Chrysler (FCAU) – Fiat Chrysler may cut its planned special dividend related to its upcoming merger with Peugeot parent PSA Groupe, according to the Italian newspaper Il Sole 24. The automaker is trying to conserve cash amid the COVID-19 pandemic’s impact on global auto sales.
Regeneron Pharmaceuticals (REGN) – Regeneron said its antibody drug cocktail to treat Covid-19 is starting phase 3 trials, less than a month after the treatment began phase 1. Separately, Regeneron and partner Sanofi (SNY) said a U.S. trial involving the use of their arthritis drug Kevzara to treat Covid-19 patients failed to help those patients recover. The trial has now been halted.
Boeing (BA) – Another key test flight for Boeing’s grounded 737 Max jet could take place as soon as this week, according to The Wall Street Journal. An “operational readiness review” will be conducted involving government pilots and airline crews from around the world.
Netflix (NFLX) – Netflix had a robust library of Black content before anyone else in Hollywood, according to an article in today’s New York Times. The article said rivals of the video streaming service are now scrambling to catch up.
Spotify (SPOT) – Spotify was downgraded to “underperform” from “market perform” at Bernstein, which said that although podcasts could increase the streaming service’s market share, it will not add much to the bottom line.
Embraer (ERJ) – A union representing workers at the Brazilian jet maker filed a lawsuit seeking to dismiss the company’s board, after a $4.2 billion deal to sell the majority of Embraer’s commercial aviation unit to Boeing fell apart. The union accuses the company of acting in bad faith, while Embraer said the union’s allegations are unfounded.
Harley-Davidson (HOG) – The motorcycle maker was rated “buy” in new coverage at Citi, which notes an attractive valuation and the potential for a significant turnaround under the company’s new CEO.
Tesla (TSLA) – JMP Securities raised its price target to a Street-high $1,500 per share from $1,050, saying the automaker is positioned to generate $100 billion in annual revenue by 2025.
People looking at a Tesla car on display at a showroom in Beijing.
Noel Celis | AFP via Getty Images
Tesla told employees it ended a season of reduced pay for its salaried workers on June 29, 2020, as expected, according to internal correspondence obtained by CNBC.
In mid-April, the electric vehicle company cut pay for salaried employees by 10% to 30% depending on their position. At the time, Tesla cited Covid-19 pressures on the business as a justification for the pay cuts, and said they expected them to last until some time around the second quarter of 2020.
In a new HR email, which was sent to Tesla’s global employees by Human Resources on Wednesday July 1, Tesla reiterated details about a forthcoming performance review process.
Throughout the past decade, Tesla has switched schedules for its performance reviews, causing some employees to miss out on months of higher pay, or chances to receive bonuses or more senior titles before layoffs eliminated their roles entirely.
On Thursday, Tesla shares soared after the automaker reported that it delivered 90,650 vehicles in the second quarter handily beating Wall Street expectations. CEO Elon Musk sent a “congratulations” email and thanked employees for their work during the stressful quarter the day before the delivery report, a vague nod to the fact employees had worked through a Covid-19 pandemic.
The outbreak temporarily shuttered some of Tesla’s operations during the quarter, including its car plant in Fremont, California, and battery factory outside of Reno, Nevada.
Musk also thanked Tesla shareholders in a tweet for supporting his business, which has been publicly traded on Nasdaq for 10 years, but has not yet achieved a full year of profitability. Shares closed up 8% on Thursday, a day after Tesla’s market cap surpassed that of Toyota, making it the most valuable car company in the world.
Cutting pay for employees, and delaying merit increases, promotions and bonuses lowered some of Tesla’s costs this quarter, and may have helped the company get close to the goal of positive net income in the second quarter of 2020. It has shown profits for the last three quarters, and a profit in Q2 would potentially let the company qualify for inclusion in the S&P 500.
Earnings reports from Tesla usually follow their vehicle delivery reports by about a month. Steep cuts to headcount have followed performance reviews at Tesla in the past.
Here’s what the Human Resources department said in the email to US Tesla employees this week, as transcribed by CNBC:
To: Tesla Talent
From: Tesla Talent Team
Subj. Performance Acceleration 2020 Program Launch
Date: July 1, 2020
As a followup to Valerie’s email from June 17, today we are kicking off Tesla’s new performance review program, Performance Acceleration 2020. Performance Acceleration 2020 is how we as an organization will evaluate performance, offer feedback, set clear goals and expectations, celebrate strengths and provide support / coaching where needed. It is also the primary way we will determine promotions, merit increases, equity awards and other recognition, as well as assess our organization and what is needed to continue to succeed.
The new Performance Acceleration 2020 launches today for all employees and will be a semi-annual process moving forward. Below are some key dates in the program:
Beginning June 29th: Salary Reductions End
July 1st: Performance Acceleration
July 27th: Managers Begin Delivering Performance Reviews
August 7th: Reviews Available to All Employees in Inside Tesla [an internal website]
Performance Acceleration will be hosted on [URL removed]. To help you get better acquainted with the program, you will receive access to a resource center and a short training course later this month. These will include information regarding the new performance ratings for the program and some of the frequently asked questions about the program.
There’s no current action you need to take, however, please keep an eye out for additional communication about upcoming resources and training for Performance Acceleration 2020. Your manager will be reaching out to you at the end of the month to discuss your review.
For more information on the Performance Acceleration 2020 Process, please reach out to your HR Partner or email [HR email address removed].
Tesla Talent Team
Tesla shares soared in pre-market trading Thursday after the automaker said it delivered 90,650 vehicles in the second quarter, handily beating Wall Street expectations.
Analysts expected the electric car maker to delivery about 72,000 vehicles during the last three months, according to a consensus of analysts surveyed by FactSet. A broader set of analyst estimates, compiled by Bloomberg, set Wall Street expectations for Tesla higher at 83,000 vehicle deliveries in the second quarter.
Shares of Tesla closed Wednesday up 3.7% to $1,119.63. The company’s stock jumped by about 10% in pre-market trading.
The deliveries come a day after Tesla CEO Elon Musk sent out an e-mail congratulating his tens of thousands of employees on their “amazing” execution “in such difficult times.”
In the first quarter of 2020, Tesla said it made more vehicles than it sold– with 102,672 units produced, and 88,400 delivered. During the second quarter of 2019, Tesla said it made 87,048 vehicles including 72,531 Model 3s, and delivered 95,200, including 77,550 Model 3s.
Deliveries are the closest approximation of sales numbers reported by Tesla.
Auto sales the world over, and especially in the U.S., slumped during the quarter after Covid-19 outbreaks led to health restrictions on households, travel and businesses, mass layoffs and wage cuts.
During Q2, Tesla had to close its main U.S. car plant in Fremont, California for several weeks due to health orders. It slashed pay for salaried workers, and delayed giving raises, promotions and bonuses to employees until after a performance review that should be completed by the end of July.
Musk famously clashed with local health authorities over Covid-19 restrictions on the Fremont plant. He also downplayed the severity and prevalence of Covid-19 in the U.S., even though he delayed the company’s Battery Day and shareholder meeting until September, citing safety for crowds in the face of the novel coronavirus.
In the US, Tesla also faced two new federal safety probes, one over a problem with its vehicle displays, and another over a cooling system in its older Model S vehicles which may pose a fire risk.
In order to stoke demand for the company’s electric vehicles, Tesla cut vehicle prices during Q2 in North America and China both.
Its Shanghai car plant came back online quickly after a coronavirus-related shutdown, however. Sales in China began to recover with the company selling 11,095 made-in-Shanghai Model 3s there in May, according to data from the China Passenger Car Association.
On Wednesday, ahead of its deliveries report, Tesla’s valuation edged higher than Toyota’s. The American automaker’s sales are a small fraction of its Japanese predecessor, however. In 2019, Tesla reported deliveries of 367,500 vehicles globally, while Toyota reported sales that were twenty nine times higher at 10.74 million units.
Tesla was expected to meet or beat street expectations for Q2 deliveries, in no small part because Musk has been sending out “Everybody” e-mails to Tesla employees, which signal how the company is doing, and typically leak to press.
He sent one such e-mail on Wednesday around 11 a.m. California time to Tesla employees with the subject line “Congratulations Tesla Team!.” The e-mail said, in its entirety: “Just amazing how well you executed, especially in such difficult times. I am so proud to work with you!”
Take a look at some of the biggest movers in the premarket:
McDonald’s (MCD) – McDonald’s halted further reopenings of dine-in service at its restaurants, postponing them by three weeks due to a rise in Covid-19 cases. Restaurants, where dine-in service had already resumed, will be allowed to continue offering it if their local jurisdictions allow it.
Tesla (TSLA) – Wedbush Securities increased its price target on the stock to $1,250 from $1,000, saying its “bull case” could see the stock rise as high as $2,000. Wedbush’s rating on the stock remains “neutral.”
JetBlue (JBLU) – The airline reached a deal with its pilots union that will avoid involuntary furloughs until May 1, 2021, according to a memo sent to its pilots and seen by Reuters. The memo did not give any further details.
Facebook (FB) – CEO Mark Zuckerberg told employees at a video town hall meeting last week that he was reluctant to bow to the ongoing ad boycott, saying that advertisers would return “soon enough.” Facebook told CNBC that it is making real progress in keeping hate speech off its platforms, and that it does not benefit from this kind of content.
American Airlines (AAL) – The airline said it was overstaffed by about 8,000 flight attendants, and may seek to cut the workforce through voluntary leaves and early retirements.
PG&E (PCG) – PG&E has exited bankruptcy protection, following the utility’s implementation of a financial restructuring plan approved by a judge and California state regulators.
Boeing (BA) – Boeing and the Federal Aviation Administration (FAA) have completed a series of recertification test flights for the grounded 737 Max jet. The FAA will now conduct a data review, and still must approve a pilot training program and other details before the jet can return to service.
Nio (NIO) – The China-based electric vehicle maker delivered 3,740 vehicles during June, a monthly record, and exceeded prior guidance with second-quarter deliveries of 10,331 vehicles.
Lemonade (LMND) – Lemonade priced its initial public offering at $29 per share, above the already-raised range of $26 to $28 per share. The online insurance company will begin trading today on the New York Stock Exchange.
HollyFrontier (HFC) – CVR Refining and HollyFrontier have both cut their workforces in recent weeks, according to sources who spoke to Reuters. Refining profit margins have dropped amid the coronavirus pandemic, and refining companies have been slashing operating expenses.
Nu Skin Enterprises (NUS) – The health products company raised its revenue outlook for the quarter that ended in June, on strong demand in the Americas and Europe. Nu Skin is scheduled to report earnings on August 5.
DocuSign (DOCU) – RBC Capital increased its price target on the stock to $210 from $170, while maintaining an “outperform” rating. RBC sees the electronic signature technology company taking a disproportionate share of the workflow digitization market.
Novartis (NVS) – Novartis will pay more than $729 million to settle U.S. charges that the drugmaker paid illegal kickbacks to doctors and patients to help drug sales. Novartis accepted responsibility for many of the allegations, and said it is now a different company with a strong culture and commitment to ethics.
Vehicles pass the Tesla Inc. assembly plant in Fremont, California, U.S., on Monday, May 11, 2020.
David Paul Morris | Bloomberg | Getty Images
Around 11:00 a.m. California time on Wednesday, Tesla CEO Elon Musk sent out an e-mail congratulating his tens of thousands of employees.
“Just amazing how well you executed, especially in such difficult times. I am so proud to work with you!” read the email in its entirety.
Tesla is expected to report its second quarter vehicle delivery and production numbers after the bell on Thursday, and Musk’s Wednesday email suggests that Tesla hit its goals. It follows Musk’s exhortation earlier in the week to “go all out” as “breaking even is looking super tight.”
According to a consensus of analysts surveyed by FactSet, as of July 1, Wall Street expects Tesla to deliver 72,000 vehicles for the period. (Estimates range from 39,000 to 86,000 units expected.)
Auto sales slumped during the second quarter after Covid-19 outbreaks led to health restrictions on households and businesses, mass layoffs and wage cuts.
Tesla had to close its main U.S. car plant in Fremont, California, for several weeks due to health restrictions. Musk defied and sued regulators in Alameda County over their orders and returned to full operations a few days before getting official clearance to do so.
To revitalize demand, Tesla cut prices of its electric vehicles during Q2 by as much as 6% in North America. It also made pricing changes in China, where its Shanghai plant came back online relatively quickly after a health-related shutdown.
Throughout the last month of the quarter, Musk has sent several “Everybody” e-mails, which have promptly leaked to press, where shareholders could easily get a sense of his messaging.
For example, in early June, Musk sent out a pair of “Everybody” e-mails, obtained by CNBC and others, in which he boasted about a glowing Model Y review in the Wall Street Journal and urged employees to stay motivated amid Model Y production and delivery problems.
He said, in another one of the emails: “It is extremely important for us to ramp up Model Y production and minimize rectification needs.” He added, “We are doing reasonably well with S, X, and 3, but there are production and supply chain ramp challenges with Model Y, as is always the case with new products.”
Professional U.S. golfer Cameron Champ immediately withdrew from the PGA Tour’s Travelers Championship last Tuesday and announced plans to self-quarantine for 14 days after testing positive for the coronavirus.
Five days later, he said he tested negative — three times — raising questions about the accuracy of the tests that are being used by professional sports to screen players before big ticket events and games.
After months of shutdown, the PGA resumed its newly revised schedule in June. As an outdoor, non-contact sport, professional golf is serving as an early testing ground for other sports leagues that may face a more difficult time resuming games in the middle of a highly contagious pandemic that primarily spreads through human contact.
Five PGA Tour golfers tested positive for the coronavirus since June and eight withdrew from the Travelers tournament, which ran under stringent new safety protocols and without on-site spectators from June 25 through June 28. Despite the precautions, several caddies have also tested positive.
“I feel great physically and I was obviously surprised and disappointed to learn of the test result,” Champ said in a statement when he withdrew from the tournament. He’s since said over Twitter than he doesn’t have any symptoms.
As the number of new confirmed coronavirus cases continues to jump in several states across the U.S., some people, including Tesla CEO Elon Musk, are questioning whether inaccurate tests are artificially inflating state case counts.
“There are almost no false-positive tests with the RNA test,” UC Berkeley infectious disease specialist John Swartzberg told McClatchy-Tribune news service. “At best he’s confused, at worst he’s prevaricating,” Swartzberg said of Musk.
PGA Tour spokeswoman Laura Neal said Champ’s test wasn’t a false positive, something infectious disease specialists is rare.
“An initial positive is a positive test, and there is a medical explanation of what happens from there,” Neal said in a statement, citing data from PGA’s official coronavirus testing partner Sanford Health.
The PGA Tour uses a nasopharyngeal polymerase chain reaction (PCR) tests, which is a molecular diagnostic testing technique that detects the genetic material from the virus and is considered the gold standard in Covid-19 testing, she said.
She said a negative test result after an initial positive test could mean one of three things: the person is on the “upswing” of getting sick and has a low viral load, the person is simply a low-load carrier who never develops symptoms or the person is on the “downswing” meaning they’re already recovering from the virus.
“Basically, given the accuracy percentage of the testing process we’re using, we’re confident the person has the virus in them and we want to be on the safest side possible,” she said.
Molecular tests such as the nasopharyngeal PCR test used by the PGA Tour have the lowest false positive rates out of the three main types of diagnostic Covid-19 tests: molecular, antigen and serology, physicians say.
“To make a diagnosis of an acute coronavirus disease, you usually use the molecular test,” said Dr. Gary Procop, a member of the American Society for Clinical Pathology board of directors and vice-chair of Pathology and Laboratories at Cleveland Clinic. He said antigen tests can be used to test for an active infection, but they aren’t as accurate, and antibody tests only check whether you’ve previously been infected.
“No test is 100% sensitive. It’s very rare to have a test that’s 100% so we shoot for tests that are in the high 90’s. 95% and up are good tests,” he added.
Procop explained that there are two reasons for why a false positive case can occur. The first is when there are any cross-reacting substances. If a person is infected with another type of coronavirus, their antibodies can make them look like they have positive Covid-19 antibodies, resulting in a false positive test result.
The second reason is when a person has a very low viral load. When someone is infected with a disease, the virus can still be detected in their specimen for many weeks even after they recover and are no longer contagious.
“When you have very low levels of the virus or viral fragments, one day you might be positive. The next day, you might be negative. There’s really nothing wrong with the test. It’s just the function of the test,” Procop said.
The lower the viral load, the less accurate the test, he said. “That’s a coin toss between testing positive and negative. The test is fine. There’s just very low levels of target.”
Procop also said that a false positive test result occurs less frequently than a false negative. False negative results can occur from inadequate nasal swab sampling, poor specimen or testing someone too early in the disease. That’s a lot more common than a false positive test, he said.
While false positive and false negative cases can happen, they are too rare to distort statewide testing data, according to Procop.
“What people have shown is when you have hospitalization outpace your testing, you know it’s true disease,” he said.
The molecular tests are “state of the art,” Procop said. “The tests that we have are really good tests. I think this is as good as it gets.”
Tesla went public ten years ago todya, pricing shares at $17, higher than its expected range of $14 to $16.
The company raised around $226 million in its IPO, with shares surging that day by around 41% to close at $23.89. Today, shares in the electric vehicle maker closed at $1,009.35, meaning Tesla’s stock has risen by 4,125 % since the close of its first day as a public company.
That stock performance puts Tesla in rarified air, alongside Netflix, which was the top-performing stock on the S&P 500 during the 2010s. (Netflix rose 4,181% between Jan. 2010 and Dec. 2019. But Netflix shares more than doubled in price between Jan. 2010 and June 2010, when Tesla went public. That means Netflix has “only” gained 2,657% in value since Tesla’s debut.) It also means Tesla has outperformed other big tech names like Amazon and Apple, as well as all the major automakers.
The stock has had plenty of ups and downs along the way, including a 30% drop in the month after Aug. 7, 2018, when a CEO Elon Musk tweeted that he had “funding secured” to take the company private. The SEC accused Musk of misleading the public, as he allegedly knew the funding was contingent, and both Musk individually and Tesla as a company paid $20 million fines to settle the suit.
But shares have been on a rally since early 2020, as Tesla got its factory in Shanghai up and running and began manufacturing the Model Y at its original U.S. car plant in Fremont, California. Investors also bought into the company’s promises to deliver an electric semi truck called the Semi, electric pickup truck known as the Cybertruck and improvements in self-driving technology. Despite the Covid-19 epidemic, which shut down production in its California factory for several weeks, shares are up more than 140% this year.
Since going public, Tesla has never achieved a full year of profitability. The company has reported seven quarters with net income greater than zero, since its IPO — the first was Q1 of 2013. It has now reported three consecutive quarters of GAAP profit, with some accounting adjustments along the way, and is scheduled to report Q2 earnings next month.
Tesla is now gunning for inclusion in the S&P 500, which requires a minimum of four consecutive quarters of profitability, among other things.