Tesla shares charge up 12% after third-quarter profits announcement

The firm boasted adjusted profits of $516m

Tesla’s shares shot up by more than 12% on Tuesday after it announced adjusted third quarter (Q3) profits of $516 million (£402.6m).

The technology and electric vehicle (EV) developer posted a net income of $311.5 million (£242.6m), translating to $1.75 (£1.37) per share, compared with a loss of $619.4 million (£483.3m), or $3.70 (£2.9) per share a year ago.

Its revenue shot up 70.5% from $4 billion (£3.1bn) in June and has more than doubled since 2017.

The company’s shares settled after the markets opened but were still up by about 6% the next morning.

It marks the firm’s third profitable quarter, meeting CEO Elon Musk’s promise that the company would start to turn reliable profits – he said Q3 marked an “incredibly historic quarter” for the company.

The business’ earnings report also showed better-than-expected car sales and a faster-than-expected timeline on the production of its Model 3 vehicle.

Elon Musk is to step down as Chairman of Tesla and pay a $20 million (£15m) fine as part of a deal with the US financial regulator over his Twitter posts.

Latest Podcast