The company this week reported third-quarter earnings of of $417 million on revenue of $6.8 billion.
Tesla shares leapt 9.8 percent to US$316.80 in after-market trades after the earnings release.
For the same period a year ago the company reported a loss of $619 million. Tesla agreed to pay $20 million as part of that settlement, and Musk said he would step down as chairman of the board; he can stay on as CEO.
Raises forecast for fourth-quarter GAAP operating margin to 5 percent from 1.6 percent previously, driven by the higher third-quarter base effect and 64,000 units of Model 3 in fourth quarter, or about 5,300/week.
Tesla's assembly line produced an average of 4,300 cars weekly in the quarter, nearing a goal set by Musk.
Tesla's Semi made its debut last November, and Musk said it was the product that excited him the most. "Many of these elements, particularly mix, are peaky in nature, and will likely fade in the future, so the burden of proof remains on TSLA to generate core underlying earnings and cash flow absent peak factors".
"When we started the Model 3 production ramp, we were transparent about how hard it would be", the representative continued.
Continues to question the USA demand for the Model 3 in a post-tax credit environment.
"They are demonstrating they are willing to spend more money for a Tesla".
Markets Right Now: Wall Street is rocked by more selling
Bond prices rose, sending the yield on the 10-year Treasury note down to 3.11 per cent from 3.16 per cent late Tuesday. Amazon and Alphabet, both scheduled to report earnings on Thursday, fell by more than 5 percent each on Wednesday.
In order to increase the affordability of the Model 3, Tesla accelerated its manufacturing timeline in China.
"We reaffirm our prior guidance that we expect to again achieve positive GAAP net income in Q4", Musk and Ahuja said in a letter to shareholders.
"I know for sure Tesla will operate its own ride-hailing service", Musk said.
Electric auto advocates are wildly pointing to this news, loudly declaring that automakers should note that electric vehicles are profitable to make.
In this 2017 Tesla chart, the company said it would build 5,000 Model 3s by end of 2017.
Production will initially take place in California, but Tesla is "moving rapidly" to get production going in China and wants to have that going next year, according to Musk.
CNBC added that Tesla's share price had risen by 12% following publication of its financial results.
In 2017, Tesla's stock surged 45.70%, thus, it outperformed the Nasdaq 100, which registered a 31.52% return.
If Tesla had chose to rest on its laurels in 2014 and not start work on the Model X, Tesla probably could have enjoyed several years of positive free cash flow-and perhaps profits-from sales of the Model S. But Musk wasn't interested in resting on his laurels.