Tesla reports first quarterly profit in three years

Tesla has reported a net income of $21.9 million (around £17.9 million) for Q3 of 2016, marking its first quarterly profit since 2013.

The profit follows a loss of $229.9 million in the same period last year and Elon Musk, CEO of Tesla, said the improved results ‘reflect strong company-wide execution in many areas’, especially in holding down operating costs.

Tesla delivered over 300 more vehicles than expected for the quarter for a record total of 24,821.

The profitable quarter came as somewhat of a surprise for the electric vehicle manufacturer and its investors and comes ahead of an expected increase in spending to support the production of its upcoming Model 3.

It is forecasting a $1.8 million spend for the year as a whole, which means a considerable jump in investment in Q4 as it has only spent $759 in the first nine months of the year.

In the wake of the profit and record sales, Tesla has reaffirmed plans to deliver a total of 50,000 for the second half of 2016, with the aim of producing 500,000 vehicles a year by 2018.

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