The electric vehicle maker reported earnings of 76 cents per share on revenue of $8.77 billion. Analysts were expecting the company to report earnings of 56 cents per share on revenue of $8.26 billion.
The company said that it is still on track to deliver 500,000 vehicles this year even though the current economic environment makes it more difficult.
"We are increasingly focused on our next phase of growth. Our most recent capacity expansion investments are now stabilizing with Model 3 in Shanghai achieving its designed production rate and Model Y in Fremont expected to reach capacity-level production soon," the company said in a statement.
Tesla climbed 2.3% to $432.49 afterhours Wednesday.
Earlier this month, Tesla reported delivering 140,000 vehicles in the quarter. The company delivered 124,318 Model 3 and Model Y vehicles in the quarter, a 44% year over year increase
The company reported operating income of $809 million, a record for Tesla, resulting in a 9.2% operating profit margin.
Quarter end cash equivalents increased by nearly $6 billion quarter over quarter to $14.5 billion after the company raised $5 billion in capital combined with free cash flow of $1.4 billion.
Tesla received price target increase from Wedbush Securities analyst Daniel Ives earlier this week, raising its price target to $500 from $475.
However, the firm also maintained its neutral rating on the stock. Wedbush has had a neutral rating on Tesla since April 2019.