Tesla posts net profit for fifth straight quarter
Tesla charged through a summertime auto industry sales slump in the US to post stronger-than-expected net earnings for the third quarter.
The electric car and solar panel maker says Wednesday that it made $331 million, or 27 cents per share, for its fifthstraight profitable quarter.
Excluding special items such as stock-based compensation, Tesla made 76 cents per share, beating Wall Street estimates of 57 cents. Revenue from July through September was $8.77 billion, also passing analysts’ expectations of $6.3 billion, according to FactSet.
But as in previous quarters, the company may have lost money if it weren’t for $397 million it earned from selling electric vehicle credits to other automakers so they can meet government fuel economy and pollution regulations.
The earnings were driven by a 44% increase in global deliveries for the quarter, which came as US auto sales overall fell 9.7% from a year ago due to consumer fears about the economy hit hard by the pandemic.
Shares of the Palo Alto, California, company rose 2.9% in extended trading Wednesday when its results were released after the markets closed. They are worth about five times what they were at the start the year, accounting for a split.
The third-quarter profit was more than double the same period a year ago, when Tesla made $143 million. Its string of profitable quarters reversed years of losses. Through the first nine months of this year, Tesla has made $451 million and appears headed toward its first annual profit. (AP)