Tesla Motors Inc. (TSLA: NASDAQ) reported this week that revenue nearly doubled in the latest quarter. The all-electric car company reported its first quarterly profit in over three years, thanks to cashing in $139 million of California tax credits that are meant to help combat climate change.

The company reported net income of $21.9 million, or 14 cents per share, for the third quarter ended Sept. 30, the first positive net earnings since the winter quarter of 2013. The profit came despite Wall Street analysts expecting a $0.56 loss. The profit compared to a loss of $229.9 million, or $1.78 per share, for the same quarter last year.

Total revenue more than doubled, to $2.3 billion, and the company’s capital spending came in dramatically below what analysts had expected as Tesla ramped up its infrastructure to begin producing its $35,000 mass-market Model 3 sedan.

Chief Executive Elon Musk stunned analysts on the company’s earnings call by commenting that despite moving from a production plan to produce 90,000 vehicles this year to 500,000 vehicles in 2018, the company’s current plan “does not require any capital raise for the Model 3 at all.”

Breitbart News reported in June that despite Tesla never meeting any of its unit production targets in the last five years, CEO Elon Musk told shareholders that through the magic of “physics-first-principles” he would revolutionize auto industry efficiency by “factors of 10 or even 100 times” to improve production profitability by 1,100 percent. Six weeks later, Tesla reported a nasty loss, and Musk was scorned by the financial press.

Tesla had planned capital spending of $2.25 billion this year. But with only $800 million spent in the first three quarters, Musk expects $1.8 billion in capital expenditure this year.

All this good operating news comes during a quarter when Tesla was hammered by the external environment. The company has been battered by reports of a growing number of injuries, and the death of a Model S driver using Autopilot, the company’s semi-autonomous driving system. Musk is also trying to have Tesla shareholders acquire debt-laden SolarCity (SCTY.O), which he and a number of family members control.

Consumer Reports on October 20 trashed Tesla vehicles in the magazine’s annual review. Although the all-electric Model S sedan earned the equivalent of 84 miles-to-the-gallon in energy consumption, and high marks for driving dynamics, the company was blasted by 1,400 mostly terrible responses from owners that took part in the magazine’s Annual Reliability Survey. The only established brands that Tesla beat were Dodge, Chrysler, Fiat, and Ram.

Some analysts scoffed at Tesla for being profitable due to $139 million proceeds from sales of California zero emission vehicle tax credits. But rival automakers are buying the credits, and essentially taxing their own California customers to avoid selling electric cars.

Tesla stated that at September 30, the company had $3.08 billion in cash and equivalents, compared with $3.25 billion at the end of the second quarter. That was $250 million better than Breitbart News had expected the company to report.

Tesla’s shares initially spiked up by over 6.2 percent on the company’s profit release. But by mid-day trading on October 27, the stock had given back most of that gain.

This piece was originally published by Breitbart.com/California