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Tesla shares rev higher after update on profits, China
[SAN FRANCISCO] Tesla shares raced higher in after-hours trading after the company announced its factory in China had started production, while a quarterly update showed better-than expected financial results.
Shares in Tesla climbed by as much as 15 per cent after the electric carmaker said it posted a profit of US$143 million - despite analyst forecast for a loss - on revenue of US$5.4 billion in the third quarter ending September 30.
Tesla said it is producing vehicles "on a trial basis" at its so-called Gigafactory in Shanghai, which will help boost global production and sales.
"We are positioned to accelerate our growth further through Gigafactory Shanghai, Model Y and also through increasing build rates on our existing production lines," Tesla said in its letter to shareholders.
The company has been dogged by concerns it may not be able to ramp up production to meet demand and that chief executive Elon Musk may have overstated Tesla's goals for sales and technology improvements.
Mr Musk has predicted the company may be able to deliver self-driving cars by 2020, though analysts are skeptical.
The shareholder letter said Tesla expects to boost vehicle deliveries and that "we are highly confident in exceeding 360,000 deliveries this year."
Tesla said deliveries of its Model 3, the most affordable vehicle in its lineup and a key to broader sales, reach 79.8 million in the past quarter, an increase of 50 per cent compared to last year.