Tesla Posts Its Second-Ever Quarterly Profit

Tesla Motors Inc. reports a $22 million net profit in July-September, thanks to a sharp upswing in pollution credits it sold to other carmakers. Results ended a 13-quarter losing streak and marked the California company’s second profitable quarter since going public in June 2010.

Combine sales of Tesla's electric Model S sedan and Model X crossover reached a record 24,500 units in the third quarter, and revenue more than doubled to $2.3 billion. The company says it is on track to deliver a record 50,000 cars in the second half of 2016.

Tesla’s sale of pollution credits in the third period surged to $139 million compared with $39 million in the same interval last year. The company says revenue from that source will probably decline in the current quarter.

New-car orders in July-September jumped 68% year on year. Tesla says it now has 250 stores and service centers worldwide, along with nearly 4,500 Supercharger quick-charge points that enable long-distance driving with its cars.

The company reports preparations are on schedule to launch production of its third EV, the $35,000 Model 3 sedan, late next year. Tesla says it is testing the chassis and powertrain and will soon begin installing welding and assembly lines for the new model at its factory in Fremont, Calif.