Tesla Turned a Profit for the Second Time as a Public Company in Q3

Stephen Elmer
by Stephen Elmer

Tesla has reported a profitable quarter for just the second time in its history as a public company.

Tesla made a profit of $22 million net in the third quarter of 2016 during which it delivered 24,500 vehicles, putting the company on track to hit its goal of 50,000 deliveries in the second half of 2016.

Besides record production and deliveries, Tesla also saw a large revenue come in from the sale of Zero Emissions Vehicle (ZEV) pollution credits to other automakers. This made Tesla $139 million, up from the $39 million the company made on credits last year. Even though these credits won’t be as profitable in the fourth quarter, Tesla still predicts a profit.

“New product launches, increased store efficiency and new store openings drove year-on-year order growth,” Tesla said in a statement. “Self-driving hardware and other product enhancements position Tesla for additional market share gains.”

SEE ALSO: Tesla Is Planning a Crazy Stunt to Prove its Self-Driving Tech Works

Overall revenue grew to $2.3 billion in the third quarter compared with the $937 million made in the third quarter of 2015. Tesla shares also saw a bump in response to the earnings report, up to $211 a share in after hours trading.

Tesla CEO Elon Musk says that the brand is still on track to begin selling the mass-market Model 3 in the second half of 2017. Musk also says that the gigafactory, a massive battery production plant, is also on schedule.

[Source: Automotive News]

Stephen Elmer
Stephen Elmer

Stephen covers all of the day-to-day events of the industry as the News Editor at AutoGuide, along with being the AG truck expert. His truck knowledge comes from working long days on the woodlot with pickups and driving straight trucks professionally. When not at his desk, Steve can be found playing his bass or riding his snowmobile or Sea-Doo. Find Stephen on <A title="@Selmer07 on Twitter" href="http://www.twitter.com/selmer07">Twitter</A> and <A title="Stephen on Google+" href="http://plus.google.com/117833131531784822251?rel=author">Google+</A>

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