Tesla shares jumped more than 10 percent in early trading Thursday, a day after the electric car maker delivered third-quarter earnings that blew past expectations, showing signs that it is on its way to becoming the sustainably self-funded company promised by CEO Elon Musk.
Musk had previously said he expected Tesla to be both profitable and cash-flow positive in the third quarter. Before releasing its results late Wednesday, Tesla had reported just two profitable quarters since it went public in 2010.
"TSLA may have crossed the line to become self-funding, which would be another clear positive," said RBC Capital analyst Joseph Spak in a note published Thursday morning. "Expect positive momentum."