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.

Tesla delivers 83,500 vehicles and produces 80,142 vehicles

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.

 

Get access to timely and accurate verbatim transcripts that are published within hours of the event.