Shares of Tesla rose sharply after the company reported third-quarter earnings, which surpassed analysts’ expectations. Tesla earned $1.6 billion during the third quarter, compared with just $42 million for the same period in 2016. And investors seemed to applaud the profit, sending the stock up more than 11 percent to $295.10.
Tesla’s profit was powered by a surge in car sales, as well as the company’s car service businesses, which includes its Supercharger stations, according to CNBC. Tesla’s vehicle deliveries were 2,222 cars during the third quarter, compared with 3,457 for the same quarter in 2016. The company’s revenue for the third quarter was $5.74 billion, compared with $4.2 billion for the same period in 2016.
But though Tesla is generally drawing a crowd for its cars and car service business, it is not, so far, putting the cash into production of its vehicles, which could bolster the company’s bottom line, and its stock price, further. Most of Tesla’s vehicle is made in Fremont, Calif., and last year, the company leased a massive plant from Hewlett Packard Enterprise to build its Model 3, a more affordable version of its Model S that has been in the works for years. Production of the Model 3 was supposed to begin in late 2017 and into 2018, but has been delayed.
Tesla said in a statement that it still plans to start production in March and to be delivering the Model 3 by the end of 2017.
Tesla’s stock has slumped more than 25 percent in the past 12 months. As it continues to slash its workforce, cut costs and delay its Model 3 production, the company will have to shore up its finances, though its efforts to make money from these businesses remain largely unimplemented.
Since the earnings report hit the market, Wall Street has been all over the place, with CNBC reporting that the company received roughly 1,000 different estimates about its profits and losses. As of Thursday, the company’s stock price is sitting at around $282.
Read the full story at CNBC.
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