Tesla shares increased by 12% in after-hours trading following its third-quarter earnings report, which surpassed analyst expectations.

The electric vehicle manufacturer reported adjusted earnings per share of US$0.72, higher than the forecasted US$0.58, and revenue of US$25.18 billion, slightly below the expected US$25.37 billion.

The company’s net income for the quarter rose to US$2.17 billion from US$1.85 billion the previous year.

Tesla benefited from US$739 million in automotive regulatory credit revenue, boosting its profit margins.