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Tesla Shares Jump 24% After Maker Reports Profit

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Tesla’s stock price rose 24 percent Wednesday after the electric car maker reported its first quarterly profit.

The maker said that it’s first-quarter net income totaled $11.2 million, up from a $89.9 million loss a year before. Tesla’s revenue grew from $30.2 million in the same time period last year to $561.8 million in this quarter on sales of the Model S sedan.

A total of 4,900 Model S sedans were sold in the first quarter, and the maker said it raised the full-year sales forecast to 21,000 from the previous 20,000 figure.

But the brand’s success isn’t as straightforward as car sales translating to income. It gathered $68 million in zero-emissions vehicle credits sold to other automakers. Brand boss Elon Musk said the ZEV credits were a one-time-time gain.

Despite that, he also expects Tesla to manage a 25 percent gross margin return by the end of the fourth quarter.

[Source: Automotive News]

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