Shares rose 17% after hours on the surprise news, in which Tesla posted a cash balance increase to $5.3 billion. The carmaker reported a profit of $1.86 per share, far beating analyst expectations for a loss of 42 cents per share. Earlier this month, Tesla shares slumped after the company reported delivering 97,000 vehicles for the third quarter, just short of analysts' forecasts and only 2% ahead of the previous quarter.
But Tesla on Wednesday exceeded promises by its billionaire Chief Executive Elon Musk, who in July said Tesla would break even in the third quarter and turn a profit by the end of 2019.
The company has said it plans to deliver 360,000 to 400,000 vehicles for all of 2019, and on Wednesday said it was "highly confident in exceeding 360,000 deliveries this year."
The company also said production of its new electric SUV Model Y and its Model 3 vehicle factory in Shanghai were ahead of schedule. Model Y production is expected to launch by the summer of 2020, while production of full vehicles on a trial basis was already underway in Shanghai, Tesla said.
The electric car maker's net income attributable to common shareholders was $143 million, or 78 cents per share, for the third quarter, compared with $311 million, or $1.75 per share, a year earlier.
Excluding items, Tesla posted a profit of $1.86 per share. Analysts were expecting a loss of 42 cents per share.
However, revenue fell nearly 8% to $6.30 billion in the quarter ended Sept. 30. Analysts had expected revenue of $6.33 billion, according to IBES data from Refinitiv.