Tesla Post Profit, Stock Jumps In After Hours Trading (TSLA)

Tesla’s (NASDAQ: TSLA) third quarter earnings hammered analyst expectations by a wide margin, as the company earned .71 cents a share on an adjusted basis on $2.3 billion in revenues. This is the company’s second profitable quarter ever.

Analysts expected a loss of 54 cents per share on $1.98 billion in revenues, according to a Thomson Reuters consensus estimate.

The Palo Alto, Calif., company posted a profit of $21.9 million, or 14 cents a share, compared with a loss of $229.9 million, or $1.78 a share, in the year-earlier quarter. On an adjusted basis, the company posted per-share earnings of 71 cents. Revenue shot up to $2.3 billion from $936.8 million.

The company also said it expects to post a profit in the fourth quarter, excluding some stock-based compensation.

Tesla (NASDAQ: TSLA) shares rose 4.2% to $210.64 in after-hours trading following the third-quarter report.
Tesla maintained its guidance for 24,500 vehicle deliveries in the third quarter, and its second-half estimate of 50,000 deliveries, at the low end of its full-year guidance of 80-90,000. More cars sold means more revenue, and at some point increased production, if it serves growing demand, will yield profits.
Tesla (NASDAQ: TSLA) ended the third quarter with $3.1 billion of cash and cash equivalents, compared with $3.2 billion at the end of the second quarter.

The company also adjusted its capital-spending forecast, saying it expects to spend about $1.8 billion for the full year after racking up $759 million in the first three quarters. At the end of the second quarter, the company said it expected to invest about $2.25 billion in capex for the year, in support of ramping up production of the Model 3.

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