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Tesla reported slightly better-than-expected second-quarter earnings per share on Wednesday evening. The stock was rising.

Follow live news and analysis of the EV maker's quarterly results, which were released Wednesday after the market closed.

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Earnings per share is one of the best metrics of a company’s financial health. In this guide, Benzinga discusses the ins and outs of earnings per share (EPS).

Earnings per share = $150,000,000 / 20,000,000 = $7.50 per share Sometimes companies attempt to manipulate their data to look better in order to attract more investments.

Limitations of earnings per share. When a company's earnings increase, it's an indication that the company is doing well financially and that it's potentially a worthwhile investment.