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Tesla shares surge to highest levels since February

Unexpected increases in profit following several successful announcements have caused shares of Tesla to rocket.

Investors were informed that manufacturing at its Chinese factory and plans for the next model were both ahead of schedule.

The company has not yet announced an annual profit, although positive results in the final two quarters of 2018 were reported.

However, this was a relatively small win in comparison to some big losses that had been evident during years of struggle. The previous lack of profits had caused uncertainty over share´s values and ultimately fuelled investor doubts.

Because of this economic downturn, Tesla decided to take action and some aggressive steps to lower expenses were made resulting in thousands of job losses and further cutbacks elsewhere.

In the most recent quarter, the firm´s bottom line was lifted despite a moderate decline in revenue. This is because operating expenses had fallen by 15 per cent year-on-year to $930m.

The improvement could be partially responsible for the unexpected profit of $143m (£110.7m) during the three months that led up to September 30th. Although this revenue beat predictions, it was still down more than 50 per cent when compared to last year.

Despite comparisons to the previous year, shares in the electric car manufacturer increased by more than 17 per cent to around $300 apiece.

Tesla has announced they feel “highly confident” about meeting previous estimates that expect more than 360,000 vehicles to be delivered this year. The company also believes they will remain profitable in the future with “possible temporary exceptions” regarding the launch of new products.