Electric auto maker Tesla Motors has posted its first quarterly profit in three years.
The company, known for heavy investments which have led to consistent losses, said its net profit amounted to $22 million in the past quarter, as it reported record revenues and deliveries. Tesla stock responded to the by rising 5% immediately after results were released after the market's close. Revenue from such credits would be "negligible" in the fourth quarter, Tesla said.
Musk is also trying to convince shareholders to approve Tesla's acquisition of SolarCity, another company with Musk as a chairman and large investor. It's Tesla's first profit in eight quarters, according to Bloomberg. Free cash flow was $176 million as Tesla invested $248 million in capital expenditures to increase production capacity, accelerate Gigafactory construction, and expand customer support infrastructure. Tesla shares jumped nearly 5% in after-hours trading to $211.83 on the news.
The figures blew away the consensus of analysts' estimates. During Q3, Tesla brought in a total of $2.3 billion, almost double from Q2 2016.
The electric carmaker said its net income for the third quarter ending 30 September was $21.9m (£17.9m). Finally, Vetr raised shares of Tesla Motors from a "hold" rating to a "buy" rating and set a $231.82 target price for the company in a research note on Wednesday, August 24th.
In the third quarter alone, income from ZEV credits amounted to $139 million - almost equal to what the company realized from selling those credits in all of 2014 says Cowen analyst Jeffrey Osborne.
The firm is also rolling out the Model 3, which it hopes will help it meet its 2018 goal of producing 500,000 cars annually.
Tesla's results were lifted by $139 million in sales of California zero emission vehicle credits.
Stressing that he was speaking speculatively and that the situation might change, he added that Tesla would "probably" not do a capital raise in the first quarter of 2017. Tesla also reiterated its second-half estimate of 50,000 deliveries.
In the short-term, Elon Musk says the recent addition of the P100D and Model X will increase Tesla's delivery numbers until the Model 3 arrives. The electric automaker is projected to post a loss of 54 cents per share on revenue of almost $1.98 billion.