Tesla stock skyrockets on stellar earnings and Gigafactory Shanghai news

The market is responding well to Tesla‘s third-quarter earnings report, released this afternoon after the bell.

The revved-up tesla stock was $298.30, up $43.62 or 17.13%, in after-hours trading.

Tesla reported total revenues of $6.3 billion in its third quarter, which ended September 30, compared to $6.8 billion this time last year.

The Palo Alto, California-based company’s adjusted net income was $342 million with adjusted earnings per share of $1.91. For the third quarter of 2018, it was $516 million and $3.02, respectively.

FactSet analysts had forecast a 46¢ loss per share and $6.43 billion in revenues.

“Last year, our story was about ramping the Model 3. While total volumes are expected to grow by approximately 50% in 2019, this year our focus has been cost control and preparing for our next phase of growth,” Tesla said in a statement. “Despite reductions in the average selling price of Model 3 as global mix stabilizes, our gross margins have strengthened. Additionally, operating expenses are at the lowest level since Model 3 production started.”

The company also pointed out that its Gigafactory Shanghai is ahead of schedule as is trial production of the Model Y, with production expected to start by next summer.

Tesla saw record vehicle production—96,000—and deliveries of 97,000 vehicles.