Tesla Inc. (TSLA) topped revenue and earnings expectations for the third quarter of 2018 and achieved profitability as promised by CEO Elon Musk. Shares soared over 12% in aftermarket hours following the solid results.
Total revenues grew to $6.82 billion from $2.98 billion in the same period last year. The market estimate for revenue was $6.3 billion. Automotive revenues grew 158% year-over-year, driven by increased Model 3 deliveries.
The company achieved profitability with net income attributable to shareholders of $312 million or $1.75 per share compared to a net loss of $619 million or $3.70 per share in the prior-year quarter. Adjusted earnings totaled $516 million or $2.90 per share, beating analysts’ forecasts for a loss of $0.19 per share.
Average weekly Model 3 production, excluding planned shutdowns, was roughly 4,300 units per week. Labor hours per Model 3 fell over 30% sequentially, falling for the first time below the level for Model S and X. During the quarter, Tesla delivered 56,065 Model 3s to customers.
In the third quarter, Tesla’s energy storage deployments grew to 239 MWh, up 118% from the prior-year period, indicating that the company is well on track to achieve its goal of tripling energy storage deployments in 2018 compared to 2017.
Operating cash flow was $1.39 billion. The company’s cash position increased by $731 million in the quarter despite paying $82.5 million of bonds.
Tesla expects Model 3 production and deliveries to increase sequentially in the fourth quarter of 2018. The company’s target of delivering 100,000 Model S and X vehicles this year remains unchanged. Tesla expects to achieve positive GAAP net income in the fourth quarter of 2018.