In the second quarter of this year, Tesla posted an operating margin of nearly 5 percent, its fourth consecutive GAAP profit, and a positive free cash flow of $418 million.

    On July 23, Beijing time, Tesla released its Q2 2020 financial results.Earnings data showed that Tesla's Q2 revenue reached $6.036 billion and its net profit was $104 million, marking its fourth consecutive quarter of profit.

    Tesla delivered 31,000 Q2 vehicles in China, accounting for 30 percent of its global sales, according to the Federation.The Model 3 sold 11,000 units in May, up 205 per cent month-on-month;Sales in June were 14,900 units, up 35.22% month-on-month.The overall decline in China's car market to keep the trend of growth.

    Tesla points to rising profits thanks to improvements in underlying operations.In addition, the cost of factory shutdowns was offset by measures to reduce expenses during the quarter.GAAP operating margin has been close to 5% for the past 12 months.Operating margins are expected to continue to grow and eventually reach industry-leading levels.

    Continue to improve cost efficiency across the enterprise and closely manage working capital while investing in product roadmaps, improving technology and localizing production.

    Tesla also announced that it will continue to add capacity.Three plants will be built on three continents later this year, and the next gigafactory is set to be built near Austin, Texas.

The following is the specific content of the financial report:

cash

Cash and cash equivalents rose $535 million to $8.6 billion in the second quarter

Cash flow from operations (free cash flow) after capital expenditures was $418 million in the second quarter

profit

GAAP reported operating profit of $327 million in the second quarter and an operating margin of 5.4%

GAAP net income for the second quarter was $104 million and non-GAAP net income (before share-related expenses) was $451 million

Four consecutive quarters of profit

operating

A site has been identified for the next US gigafactory, and preparations are underway

Model S mileage increased to 402 miles (EPA)

Production of the Model Y and the Made-in-China Model 3 continues to grow