Tesla Motors Inc (NASDAQ:TSLA) turned to profit in the third quarter, its first profit in more than three years, helped by about $139 million in sales of clean car credits. CEO Elon Musk expects the company to report profit in the fourth quarter as well.
TSLA shares jumped more than 4 percent in the after-hours trading session following Q3 earnings and revenue.
The Palo Alto, California-based automaker’s current plan doesn’t need any capital raise for its upcoming Model 3 sedan, according to Musk, which suggests that Tesla has significantly cut the costs for launching production of its high volume Model 3 Sedan in 2017.
The company reported net income of $21.9 million, or 14 cents a share for the third quarter, as compared to a loss of $229.9 million, or $1.78 a share in the same period last year. Revenue for the third quarter came in at $2.30 billion, more than doubled versus the year-earlier quarter.