The stock price of Tesla Motors (NASDAQ: TSLA) surged during the extended trading hours after the electric car manufacturer reported third-quarter financial results that beat the estimates of Wall Street analysts.
TSLA stock climbed more than 4% to $211.10 per share during the extended trading on Wednesday.
Tesla Q3 financial results
Tesla reported that its adjusted earnings were $111 million or $0.71 per share for the third quarter, higher than the $0.54 per share expected by analysts.
The company’s total GAAP revenue was $2.3 billion, an increase of 152% from the same quarter a year ago. Analysts expected Tesla to generate $1.98 billion in revenue.
During the period, Tesla delivered 24,821 electric vehicles including 16,047 Model S and 8,774 Model X. Its total deliveries increased 114% from the same quarter last year. The company said, 5,056 cars were in transit to customers by the end of the quarter, and will be delivered in the fourth quarter.
Tesla’s Services and other revenue went up 78% to $150 million due to higher sales of used vehicles and stationary storage products. The company’s total GAAP automotive gross margin was 29.4% while Q3 Services and other gross margin was 3.4%.
The electric car manufacturer ended the quarter with $3.1 billion cash and cash equivalents after repaying debts worth $600 million.
Tesla will continue to be profitable
In a conference call with analysts and investors, Tesla Chairman and CEO Elon Musk expressed confidence that the company will continue to be profitable excluding non-cash stock-based expenses in the next quarter.
He also indicated that there is a possibility that the company will deliver profits even it would take into account those non-cash stock-based expenses.
Tesla maintained its vehicle delivery guidance of 50,000 new vehicles for the second half of 2016. The company expected its fourth quarter deliveries to more than 25,000 vehicles.
In a letter to shareholders, Musk said the company already completed its production line layouts for the Model 3. It will soon start the installation of new body welding and final assembly lines.
Musk added that Tesla has a world class team of suppliers for Model 3 production equipment and components. The electric car manufacturer is now testing vehicle systems such as chassis, the high voltage drive system, and the low voltage subsystems such as vehicle controllers, HVAC, infotainment, and lighting.
Tesla’s Gigafactory remains on track to begin cell production later this year. The company also continues to expand its production capacity at its Fremont facility, and exploring additional production capacity in Asia and Europe, according to Musk.