Tesla shares surged Wednesday to their highest level since February after Elon Musk's company told investors that production at its Chinese plant and plans for the next model are ahead of schedule.
Tesla also reported a surprise third-quarter profit of $ 143 million. This exceeded analysts' forecasts, but still more than 50% lower than last year.
Shares in the electric vehicle maker rose more than 17% to about $ 300 apiece.
Last year, Musk took active steps to cut costs, cutting thousands of jobs and limiting other costs.
“We have made great strides in cost control. Our operating costs are now at their lowest level since the start of Model 3 production, ”said Elon Musk.
Last quarter, operating expenses were down about 15% year-on-year to $ 930 million, improving the company's performance despite a slight decline in revenues.
In earnings on Wednesday, the company said it will remain profitable going forward, with “possible temporary exceptions” for new product launches.
Tesla said it is confident it will deliver more than 360,000 vehicles to the global market this year.
The company is betting on a major success in China, the world's largest automotive market. Sales there have been hit by tariffs caused by the U.S.-China trade war.
