Electric-car maker Tesla Inc.'s shares surged in after-hours trading as the company posted profit for the third quarter ended Sept. 30, beating analyst expectations.
Shares of the company were up 17.6% to $299.50 in after-hours trading.
The automaker reported non-GAAP net income attributable to common stockholders of $342 million, or $1.91 per share. Analysts had expected a loss of $40.7 million, according to the mean consensus estimate for net income excluding exceptions on S&P Global Market Intelligence.
Tesla posted a net profit of $516 million, or $3.02 per share, in the year-ago period.
Revenue in the third quarter came in at $6.3 billion, down 8% from $6.82 reported in the third quarter of 2018, and missing analysts' estimates of $6.48 billion, according to Market Intelligence.
Automotive revenue in the third quarter was $5.35 billion, down 12% from $6.1 billion in the prior-year period.
Capital expenditures for the quarter were $385 million.
Tesla said it is "highly confident" in exceeding 360,000 deliveries this year. The company had previously reported that it produced 96,155 vehicles and delivered 97,000 in the third quarter.
The automaker said it expects positive GAAP net income going forward with "possible temporary exceptions" around the launch of new products. On a GAAP basis, net income attributable to common stockholders in the period totaled $143 million.
In addition, Tesla said it has started producing vehicles on a trial basis at its Gigafactory in Shanghai.
"We have cleared initial milestones toward our manufacturing license and are working towards finalizing the license and meeting other governmental requirements before we begin ramping production and delivery of vehicles from Shanghai," the company said in a statement.