Investors approved of Tesla’s latest earnings report on Tuesday.
In his letter to shareholders, CEO Elon Musk said demand was on the rise for the company’s electric cars, and production at its massive Gigafactory in Nevada is rolling out ahead of schedule.
Tesla’s quarterly revenue of $1.2 billion — $937 of GAAP revenue — was slightly below predictions.
Musk said Tesla had a $230 million GAAP net loss last quarter which didn’t surprise investors. Tesla is a young company and they expect it to spend more than it makes.
It’s the first report since Tesla began deliveries of its new Model X SUV. Tesla confirmed its delivery guidance, which it weakened in the last quarterly report. The company intends to deliver 50,000 to 55,000 vehicles this year.
Shares jumped more than 11% in extended trading after the company’s earnings posted.
Launching the Model X and rolling out new autopilot software to Tesla drivers has spurred sales. Musk said Model S orders were up 50% from the same quarter last year.
Tesla’s also gearing up to enter a new sector. It’s seen “growing demand” for energy-storing batteries called Powerpacks and Powerwalls and recently began production at the Gigafactory.
Musk wrote that Tesla Energy is “positioned for strong growth” in 2016, though moving factories may delay deliveries until next year.
The company is also poised to unveil its third electric vehicle — the Model 3 — next spring. With an expected starting price of $34,000, the Model 3 could sell for less than half the price of both Tesla’s current models.
