Tesla Reports First Quarterly Profit For Three Years

by Lawana Perkins | Posted on Thursday, October 27th, 2016

Electric car maker Tesla has reported net income of $21.9m (£17.9m) for the third quarter after 13 consecutive quarterly losses.

Tesla Electric car

This compared with a loss of $230m a year earlier.

Record deliveries helped to offset rising expenses for next year’s roll-out of the company’s mass-market Model 3 saloon car.

Tesla delivered a record 24,821 cars during the quarter, more than 300 more than estimated.

Shares in the electric car maker jumped 3.76% in after-hours trading.

“The Tesla third quarter results reflect strong company-wide execution in many areas,” said chief executive Elon Musk and chief financial officer Jason Wheeler in a statement.

“We set new records for vehicle production, deliveries and revenue.”

Tesla, which went public in 2010, had not made a net quarterly profit since the first quarter of 2013.

In the previous two quarters it had missed production targets.

Inside Tesla’s gigantic Gigafactory

Tesla agrees deal to buy SolarCity

The firm is counting on the Model 3 to help it meet its 2018 goal of producing 500,000 cars annually.

The Model 3 is Tesla’s attempt to widen its market appeal with a more affordable car. Its starting price is expected to be $35,000.

In its third quarter results Tesla did not provide an update on its planned $2.6bn acquisition of solar panel maker SolarCity.

Mr Musk, who is SolarCity’s chairman and main shareholder, has said he plans to provide more financial details on the deal on 1 November before a vote by shareholders of both companies on 17 November.

Autostin Logo