The carmaker had a profit of $5.5 billion as sales of its electric vehicles continued to surge, especially in China and Europe.
The automaker will build a battery plant and overhaul an existing factory to produce electric pickup trucks, creating 4,000 jobs.
After struggling to produce cars because of a global computer chip shortage, automakers are trying to move quickly to making electric vehicles.
The electric-car maker managed substantial growth as Europe and China increasingly propelled sales.
The recalls, which Tesla initiated on Dec. 21, affect about 350,000 Model 3s and 120,000 Model S cars.
The limited supply of new and used vehicles is forcing some Americans to go to great lengths to find and buy them, including traveling to dealers hundreds of miles away.
The company, which began trading on the stock exchange last month, said it lost $1.2 billion in the third quarter.
The company will make electric pickups at an existing plant and batteries at a factory built with a partner, a person with knowledge of the plan said.
“We are aware of driver concerns and are discussing the feature with the manufacturer,” the National Highway Traffic Safety Administration said in a statement.
The feature raises fresh questions about whether Tesla is compromising safety as it rushes to add new technologies.