Tesla Motors Inc (NASDAQ:TSLA) reported q3 earnings Wednesday after the market closed. Beating analyst expectations by far, the company earning 71 cents a share on $2.3 billion in revenues. Analysts predicted a loss of 54 cents per share on $1.98 billion in revenues. Tesla is up over 5 percent in after-hours trading. Tesla reiterated the forecast for 50,000 new vehicle deliveries for the second half of 2016 with a q4 plan of 25,000 deliveries.
Tesla reported that it is in the process of improving automotive gross margins by 2-3 percent points on a GAAP and non-GAAP basis by the end of the year. The company expects capital expenditures this year to be about $1.8 billion as its focus is on capital efficiency. For the past three quarters, capital expenditures totaled $759 million. Tesla also cited new product launches, the rise in store efficiency, and new store openings which was a major factor in driving q3 results.