In the second quarter, Tesla said it sold $428 million in credits, all pure profit. With this, Tesla has achieved four quarters of profitability. That decision will be made later.
Local government restrictions forced Tesla to close its only US assembly factory in Fremont, California, from March 23 to May 11.
Tesla has been upgrading the Fremont Factory to support the production increase.
Tesla shares closed 4.5% lower at $1,568.36 on Tuesday, and traded 0.7% higher in the after-hours session. However, a strong rebound in the Chinese market contributed significantly to Tesla's better-than-expected performance. The company is counting on manufacturing efficiencies to increase profits, he said.
Also Wednesday, Tesla said it has picked the Austin, Texas, area as the site for its second USA assembly plant. Austin was the front runner, but Tulsa, Oklahoma, was a possibility. Asked how many vehicles the plant would eventually produce, he said "a lot". "We want to be slightly profitable and maximize growth and make the cars as affordable as possible", he said Wednesday.
He would also have to wait several years before being allowed to sell them. The company based in Palo Alto, California, has updated its Autopilot driver-assist software to recognize stop signs and is working on navigating intersections and city streets, he said.
Past year he predicted Tesla would get regulatory approval from a few states by the end of 2020 for autonomous vehicles to drive on roads. Tesla says drivers always have to pay attention while using Autopilot.
Tesla's Q2 Results: Tesla reported adjusted EPS of $2.19 and sales of $6.04 billion that beat the Street's $5.23-billion estimate.
For the first half of the year, Tesla's net income was $120 million on the strength of $782 million in credits.
In a pay deal approved by shareholders in 2018, Mr Musk obtained the right to buy 1.69 million shares once Tesla's stock had reached an average market capitalisation of $150bn over a period of six months.
"While achieving this goal has become more hard, delivering half a million vehicles in 2020 remains our target", according to the Tesla report. The company has far more consumer demand than it can supply.
The factory, scheduled to open in 18 months, would manufacture the company's Cybertruck pickup, a semi truck, and Model 3 and Model Y cars for the Eastern United States, Musk said.
"As long as they can keep getting credit revenue and they have new offerings ramping up like the Y, they have a chance at continued profit", he said. "Profit without the credits needs more volume though". Such a scenario would likely push Tesla to new heights.
Tesla generated $964 million in cash from its operations from April through June, and it ended the quarter with about $9.1 billion in cash. But it also had $8.5 billion in debts, according to financial statements.
The interior of the Model Y factory in Shanghai.