Tesla Inc. on Wednesday reported third-quarter net income of $331 million, extending its record streak of profitability to a fifth quarter as it aims to deliver half a million vehicles in 2020.
The electric vehicle maker reported a 39 percent jump in revenue to $8.8 billion. It was aided by $397 million in regulatory credits sold to competitors. Automotive revenue jumped 42 percent to $7.6 billion. Its third-quarter automotive margin — 27.7 percent — topped the 25 percent mark for the third consecutive quarter.
“We are increasingly focused on our next phase of growth,” Tesla said in a statement. “Our most recent capacity expansion investments are now stabilizing with Model 3 in Shanghai achieving its designed production rate and Model Y in Fremont expected to reach capacity-level production soon.”
After delivering nearly 140,000 vehicles in the third quarter and 318,980 year to date, Tesla said its sticking by its target of 500,000 deliveries in 2020.
“Achieving this target depends primarily on quarter over quarter increases in Model Y and Shanghai production, as well as further improvements in logistics and delivery efficiency at higher volume levels,” the company said.
Tesla shares gained 2.6 percent to $433.64 in aftermarket trading.