NEW YORK (
(TSLA - Get Report)
shares surged 8.8% to $146.00 in
trading, according to
, following earnings that blew past Wall Street expectations.
The electric car maker, led by CEO Elon Musk, earned 5 cents a share on $405 million in revenue, as global deliveries of the Model S surged to 5,150 units for the quarter. Gross margin for the quarter was 22%, despite a reduction in ZEV credits, something investors had been worried about.
Analysts polled by
expected Tesla to lose 17 cents a share on $383.4 million in revenue for the second quarter.
"During Q2, we improved our production rate by 25% from 400 to almost 500 vehicles per week. 5,150 cars were delivered during the quarter, significantly surpassing our expectation of 4,500 deliveries," CEO Elon Musk said in the letter to shareholders. "In the quarter, we produced several hundred more Model S vehicles for use as service loaners, for customer test drives and for deliveries to European customers in Q3. We are now doing final assembly and testing of vehicles at our European manufacturing facility in Tilburg, Netherlands."
For the third quarter, Tesla said it expects to deliver slightly over 5,000 cars as the company expands into Europe, and remains on track to deliver 21,000 Model S units during the year. The company said it expects non-GAAP gross margins to be "in the low 20% range, with continuing improvements in Model S vehicle margin, offset by significantly lower ZEV credit revenue."
Tesla shares closed the regular session lower, losing 5.6% to finish at $134.17.
Written by Chris Ciaccia in New York