Tesla (NASDAQ:TSLA) stock has jumped 23% over the past week as of close on October 29. The stock is still down 4.9% in 2019 so far.
However, its most recent earnings report breathed some life into shares as short sellers continue to take aim at the automotive and energy company.
Last week, Tesla posted a net profit of $143 million in the third quarter. This came after a whopping $1.1-billion loss in the first half of 2019.
Adjusted earnings per share soared over even the most optimistic Wall St. forecasts to $1.86. However, third quarter revenues failed to meet expectations and came in at $6.3 billion, down from $6.8 billion in the prior year.
Operating expenses have dropped to the lowest since the Model 3 was introduced, which indicates Tesla is maturing after the strenuous rollout.
It also managed to generate positive free cash flow in Q3. Tesla announced that its so-called "gigafactory" in Shanghai is ready for production of the Model 3 at a cost that is 65% less expensive than its U.S. production systems.
Small batch production of the Tesla Semi, its electric heavy-duty truck, is expected to begin next year. Tesla is still confident that it will reach its goal of 360,000 to 400,000 cars delivered by the end of 2019. This is a promising quarter that puts the company on track as competition in the electric vehicle market is set to ramp up significantly in the next decade.
