Tesla Reports Strong Q2 Earnings, Expects Positive Gross Margins On Model 3

Tesla Inc TSLA delivered a big second-quarter earnings beat after Wednesday's close, the last report before the highly-anticipated Model 3 will hit the market.

Second-quarter adjusted EPS came in at $(1.33), beating analyst estimates by 47 cents.

Revenues were also higher, coming in at $2.79 billion, which was about $240 million higher than consensus. Deliveries were up 53 percent year over year.

Tesla also said it expects positive Model 3 gross margin in Q4.

"Reservations for the recently rolled out Model 3 sedan, which starts at $35,000, have grown to more than 500,000, up from the 373,000 the company reported in the spring of 2016, and more than the total sales of any entry level luxury car," CNBC noted.

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Shares rocketed higher following the report, up about 3 percent to $36 in after-hours trading.