Tesla shares are higher Thursday, after the electric car maker posted a surprise third quarter profit, when it released the results after the US market close, Wednesday. CEO Elon Musk called the profit – which he had promised shareholders earlier this year – “truly historic”.
By 1540 BST, Tesla shares were 4.90% higher at $302.63. The stock gained as much as 10% in out-of-hours trading, post the results announcement.
Tesla Q3 earnings
Tesla surprised the markets by reporting a third quarter profit of $311.5 million, compared with a loss of $619.4 million in the same period during 2017. That was the equivalent of $1.75 per share, up from a loss of $3.70 per share in 2017.
The electric car maker also said its Q3 revenues climbed 70.5% to hit $6.82 billion, up from $4 billion in the second quarter and more than double the $2.98 billion reported in the same period a year earlier.
“Q3 2018 was a truly historic quarter for Tesla,” Tesla’s CEO Musk said in a letter to shareholders. “Model 3 was the best-selling car in the US in terms of revenue and the 5th best-selling car in terms of volume.”
“Model 3 is attracting customers of both premium and non-premium brands, making it a truly mainstream product. We are thankful to our customers for being such strong advocates of our products and mission,” Musk added.
Welcome good news
The expectations beating earnings report comes after a period of intense trouble for the car maker. Musk and Tesla were both fined $20 million by the US SEC for communications related misconduct and fraud. Musk has also been stripped of his chairman-ship of the business he co-founded.
However, after managing to just achieve self-imposed delivery and financial targets, the third quarter profit, coming before the end of the year is a real positive step for the electric car maker that’s working to increase demand for smarter and more energy efficient vehicles.