Shares of US electric carmaker Tesla rose about 12 percent in after-hours trading on the New York Stock Exchange, adding about $80 billion to its market value.
This comes after the company reported a higher-than-expected profit margin in the third quarter of this year despite offering significant financial incentives to boost demand for its aging electric vehicle lineup.
The company's business results showed a 17.3 percent increase in net profits during the third quarter of this year on an annual basis.
Tesla said its profits amounted to $2.2 billion during the third quarter, compared to $1.85 billion during the same period last year.
This significant increase in profits came despite lowering prices and interest rates on car sales financing in order to increase sales. It is also the first time the company has achieved growth in quarterly profits during the current year.
Meanwhile, Tesla's third-quarter revenue increased 8 percent year-over-year to $25.2 billion, while analysts were expecting $25.5 billion.
Tesla CEO Elon Musk said he expects vehicle sales to grow 20 to 30 percent next year, reassuring investors that the company is improving its core business of selling electric vehicles profitably and allaying concerns about when it will produce taxi robots.
