Tesla's Stock Soars After Company Posts Surprising 3Q Profit

Tesla posted a surprising profit of $143 million in its latest quarter, raising hopes the electric car pioneer may finally be turning the corner after posting mostly losses during its first decade as a publicly held company.

The positive results announced Wednesday came after Tesla lost $1.1 billion during the first half of the year. That had caused many investors to lose faith in the company even as it boosted sales of its vehicles.

Doubts about Tesla led its stock to fall by 23% so far this year, while the bellwether Standard & Poor’s 500 index has climbed 20%. But Tesla’s shares recovered a big chunk of those losses after its third-quarter numbers came out, soaring 20% to $306 in extended trading.

The rally stemmed largely from investors’ surprise given the widespread expectation on Wall Street that Tesla would register yet another significant loss for the July-September period. Analysts surveyed by FactSet had projected Tesla would lose about $253 million during the third quarter.

Instead, Tesla delivered a “jaw-dropper,” said Wedbush Securities analyst Daniel Ives. “The Street wanted profitability and Tesla delivered in big fashion.”