2016.10.2622:45:00UTC+00Tesla Shares Surge After Posting Profitable Quarterly Results

Tesla Motors Inc. posted its first profit after 12 quarterly losses and topped analysts expectations for the third quarter by a wide margin, causing its shares to jump 5% to $212.05 in late hours trading on Wednesday.

The carmaker reported an unexpected $22 million profit in its most recent quarter, bolstered by record sales of its expensive electric cars. Revenue rose to $2.3 billion from $936.8 million during the previous year. Tesla posted earnings of 71 cents per share, contrary to the expected loss of 54 cents per share on a $1.98 billion revenue.The company reported it also was able to pay off $600 million in debt.

Combined net orders for its Model S sedans and Model X sport-utility vehicles rose 68% during the third quarter year-on-year, indicating the strong demand for Tesla's cars. The company reached production of 25, 185 vehicles or a rise 37% from the second quarter and a gain of 92% from the third quarter.

Tesla said its new product debuts, maximized store efficiency and new store openings boosted its third-quarter results. CEO Elon Musk said the company believes it will continue to profit during the fourth quarter. Tesla lowered its projection for capital spending from $2.25 billion to $1.8 billion.

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