Tesla reports better than expected profit, sending shares higher

Texas-based company reports $2.2bn profit for July to September, after back-to-back disappointing quarters.

Tesla has posted a forecasting-beating profit in the third quarter, breaking a recent streak of disappointing earnings for the electric carmaker.

The Austin, Texas-based company on Wednesday reported net income of $2.2bn for the July-to-September period, up 17 percent year on year.

Revenue rose to $25.18bn, up 8 percent from $23.35bn from a year earlier.

Tesla’s strong earnings were driven in large part by revenue from sources other than vehicle sales.

Revenue from charging services, sales of storage batteries, and sales of carbon emissions credits to other carmakers all registered double-digit growth.

The earnings, which bested market analysts’ expectations, marked a turnaround from double-digit falls in profit during the previous two quarters.