The automaker reported that it earned $104 million million in net income, or $0.50 a share, compared with a $408 million loss, or a $2.31 per share loss, in the same period last year. Tesla's adjusted EBITDA in in the second quarter, a heavily-shaped profit metric, was $1.21 billion in the quarter, up from $572 million in the year-ago period.
Excluding certain costs, the company's adjusted net income was $451 million in Q2, worth $2.18 per share.
Analysts had expected a loss of 11 cents per share and revenue of $5.23 billion, according to data compiled by Yahoo Finance. Tesla shares around 7% in after-market trading on the news, to $1,698 per share. (Other data sources had higher per-share profit and revenue expectations.)
Tesla reported revenue of $6.04 billion, more than the $5.985 billion generated in the previous period and around $300 million less than the same quarter last year, or about 5%. Tesla generated $6.3 billion in revenue in the second quarter of 2019.
Its automotive gross margins grew to 25.4% in the second quarter, up from 18.9% in the same period last year. Tesla includes regulatory credits in its automotive revenues, which figure into its gross margins.
Regulatory credits in the second quarter were $428 million. Revenue from credits dropped after the first quarter of last year, hovering between $111 million and $134 million, before popping again this year. Tesla reported $354 million in regulatory credits in the first quarter, a 64% increase from the first quarter of 2019.
Tesla reported positive free cash flow of $418 million in the second quarter, up from a negative Q1 2020 result, but down 31% from a year-ago result of positive $614 million. Tesla has previously targeted being free cash-flow positive for 2020. The company didn't hit that goal in the first quarter of the year, reporting a negative free cash flow of $895 million.