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Tesla Reveals A $21.9 Million Surge In Quarterly Profit Despite A Dismal Ranking In Recent Car Reliability Survey

By Jiran , Oct 28, 2016 04:15 AM EDT
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Consumer Reports has recently released the result of its Annual Auto Reliability Survey. Tesla Motors was way off from being one of the most reliable cars. However, Tesla might be over that with their latest quarterly profit. The maker of luxury vehicles' has a surge in profit went up at $21.9 million.

According to the Investor Place, Tesla has earned 14 cents per share on a total of $2.3 billion revenue. This is contrary to the predicted GAAP loss of 53 cents per share on $2.34 billion of sales by analysts. In the same time period last year, Tesla only had $1.24 billion in sales and a GAAP loss of 58 cents.

Tesla's Elon Musk Is Very Hopeful For The Next Quarter

Tesla's CEO Elon Musk must be proud of the 145 percent jump from the last quarter. According to Forbes, he said in a conference call with analysts that this is their best quarter ever. Apparently, he is very hopeful that Tesla will also achieve their best fourth quarter. Musk added that the company may be profitable again.

Musk also has more reasons to cheer about. Indeed, it is one of their best moments. Tesla's share went up to 4.4 percent in after-hours trading.

Tesla's Executive Are Also Happy

Several factors may have contributed to the said growth of the automaker. Tesla Executives have mentioned that product launches, increased store efficiency and new store openings including self-driving hardware and other product enhancements have caused its additional market share gains.

With regards to the above mentioned self-driving hardware, Tesla has recently updated its Autopilot system. Forbes further reports that the company is waiting for the result of an investigation by US regulators. This is in connection with the fatal Florida crash when the driver was using Tesla's Autopilot system.

The Consumers Reports Car Reliability Survey

Tesla received a low reliability in the recent car reliability survey by Consumers Reports. General Motors' Buick is the only US car brand that made it in the top three of the most reliable cars along with Lexus and Toyota.

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