AP Photo/Jae C. Hong
- Tesla's third-quarter profit blew past Wall Street forecasts.
- The news sent shares skyrocketing 20% after the results allayed fears the company might struggle to return to profitability.
- Some analysts are raising their price targets following the beat, but they're also questioning the how long the company can churn out this level of earnings.
- Here's what Wall Street is saying after Tesla's unexpected third-quarter profit.
- Watch Tesla trade live on Markets Insider.
Tesla delivered an unexpected profit for the third quarter on Wednesday, smashing analyst forecasts.
The electric automaker reported earnings per share of $1.91, while analysts expected a loss per share of $0.24. The news sent Tesla's stock surging as much as 20% in early market trading, cutting the share's losses for the year to about 11.5%.
The company said margins improved thanks to better cost controls leading to lower-than-expected operating expenses.
Leading up the earnings, analysts said profitability would be a key focus after Tesla reported disappointing vehicle production data for the period. The profit beat appeared to offset revenue falling 8% year-over-year, the first decline since since 2012.
While some Wall Street firms are raising their price target's for Tesla, they're also questioning the sustainability of its profits.
As the company works toward its ambitious vehicle production target of between 360,000 and 400,000 for the year and begins to bring its China facility online, analysts are warning margins could suffer.
Here's what Wall Street is saying about Tesla's surprise profit in the third quarter:
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