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.

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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.


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