Tesla’s quarterly earnings report is out, and things are looking good for the upstart electric car company. Tesla claims to have set new records for vehicle production, deliveries, and revenue, while also posting a surprise net profit of $21 million in the third quarter of 2016. It’s Tesla’s first profit in eight quarters, according to Bloomberg. Shares of the company soared 6.33 percent to $215.05 in after-hours trading on the news of the company’s better-than-expected earnings report.
Tesla said its total revenue for the quarter was $2.3 billion. The company shipped 24,821 vehicles, over 300 more than it estimated it would deliver earlier this month. Tesla shipped 16,047 Model S sedans and 8,774 Model X SUVs. In addition, 5,065 vehicles were in transit to customers at the end of the quarter and will be received in the weeks to come.
“Definitely one of the best moments ever in Tesla, I think,” Tesla CEO Elon Musk said in an earnings call Wednesday.
Tesla projects it will deliver a total of 50,000 new vehicles in second half of 2016, and plans to continue spending heavily, plowing $1.8 billion by the end of 2016 into projects like its Gigafactory and Model 3 production. The company has only spent $759 million in 2016 so far, so its plans to spend $1 billion in the fourth quarter are insanely ambitious.
“Finally, Tesla has achieved a milestone that investors long awaited – a profitable quarter and a surprise one at that,” said Michelle Krebs, senior analyst for Autotrader. “It appears the company focused intently on ensuring production targets were met while keeping costs in check.”
Tesla says it is still fine-tuning its Model 3 vehicle in anticipation of deliveries starting at the end of 2017. The company’s investors are sensitive to any indications of delay, as Musk’s timelines are generally very aggressive (and he frequently has trouble meeting them).
The company says it has “completed production line layouts and will soon begin installation of new body welding and final assembly lines.” In addition, Tesla says it is testing vehicle systems such as “chassis, the high voltage drive system, and low voltage subsystems such as vehicle controllers, HVAC, infotainment and lighting.”
“As refinement of the Model 3 continues, we remain on plan for our timing, volume, vehicle capability, pricing,and margin targets,” Tesla says.
The Gigafactory, where Tesla will produce the batteries for its electric vehicles, “remains on track” to begin production later this year. The factory will initially be used to produce energy storage products and later to support volume production and deliveries of Model 3 in the second half of 2017.
Tesla also teased an announcement regarding a new product from SolarCity on Friday evening, October 28th, at 7PM PT. The company says it will unveil its “integrated solar roof with next-generation energy storage and EV charging.” Is August, Tesla agreed to purchase SolarCity for $2.8 billion.
It’s a sign that as an entrepreneur, Musk is never satisfied. He finally gets his auto company profitable, beating Wall Street expectations, and he’s still prepping to launch a whole new business selling solar rooftops as part of a merger he hasn’t yet finalized. Oh, and he’s planning to go to Mars. So there’s that.