The automaker’s third-quarter results included $143 million in net income, or 80 cents a share, compared with $311 million, or $1.82 a share, in the same year-ago period. Tesla earned $342 million, or $1.91 a share, in the third quarter when adjusted for one-time items.
Analysts had expected a loss of 46 cents per share and revenue of $6.42 billion, according to data compiled by FactSet.
Tesla reported revenue of $6.3 billion, slightly lower than the $6.35 billion generated in the previous period and more than 7.5% lower than the same quarter last year. But it was in line with analysts expectations.
Tesla said it is “highly confident” deliveries will exceed 360,000 deliveries this year.
The third-quarter report sent Tesla shares as high as 17% in after-market trading.
Tesla was also able to improve its automotive gross margins, an important sign of its financial health. The automotive gross margin widened to 22.8% in the third quarter, from 18.9% in the previous period. The automotive gross margin has not yet recovered to the 25.8% of the same quarter in 2018.
Tesla also reported free cash flow (operating cash flow less capital expenditures) of $371 million. The company’s cash and cash equivalents balance increased to $5.3 billion.
“We continue to believe our business has grown to the point of being self-funding,” Tesla said in its earnings report.
The third-quarter report contained a number of positive signs for the automaker and marked a reversal from several consecutive quarters of losses. Tesla said its factory in Shanghai is ahead of schedule and trial production has started.
The Model Y is also ahead of schedule, Tesla said. Production of the Model Y is expected to begin by summer 2020.
Last quarter, Tesla reported a wider-than-expected loss of $408 million, or $2.31 per share, and generated $6.3 billion in revenue in the second quarter despite record deliveries of its electric vehicles.
Other important highlights from the third quarter:
-The average selling price of Tesla’s vehicles have fallen. Tesla noted that the mix of Model 3 variants had increased.
-Automotive revenues were flat at $5.35 billion compared to the previous quarter. The company was able to reach profitability in large part due to cost-cutting measures. Operating expenses were 15% lower than the previous quarter.
-Tesla said it plans to “gradually release nearly $500 million of accumulated deferred revenue tied to Autopilot and Full Self Driving features.”
-Solar installations rebounded 48% to 43 megawatts in the third quarter. However, installations are still 54% lower than the same period last year.
-Energy storage deployments has continued to grow, reaching an all-time high of 477 MWh in the third quarter.
Let us not seek the Republican answer or the Democratic answer, but the right answer. Let us not seek to fix the blame for the past. Let us accept our own responsibility for the future.