Tesla shares increase after strong third-quarter results
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Tesla Inc. shares surged on Wednesday after the company’s third-quarter earnings surpassed expectations, and it forecasted a slight uptick in vehicle deliveries for the year.
“We achieved strong Q3 results, with growth in vehicle deliveries both sequentially and year-over-year, leading to record third-quarter volumes,” the company said in a statement. Tesla also noted that its cost of goods sold per vehicle hit a record low of USD 35,100, boosting profitability. “To further accelerate the global shift to sustainable energy, we must make EVs affordable for everyone, ensuring total cost of ownership per mile is competitive with all forms of transportation.” The company also confirmed it is on track to introduce new, more affordable models, with launches expected in the first half of 2025. “Despite ongoing macroeconomic challenges and others scaling back EV investments, we remain committed to expanding our vehicle and energy product portfolio, cutting costs, and investing in critical AI projects and production capacity. We believe these initiatives will position us to capitalize on the continued transformation of the transportation and energy sectors.” Tesla expects strong vehicle deliveries in the coming quarter and anticipates higher volumes for the full year, building on a robust third quarter.
Tesla shares increase after strong third-quarter results
For the three months ending September 30, Elon Musk’s electric vehicle giant reported a 17% increase in GAAP net income, reaching USD 2.17 billion, compared to USD 1.85 billion a year earlier. Diluted GAAP earnings per share (EPS) also rose 17% to USD 0.62, up from USD 0.53, while adjusted EPS climbed 9% to USD 0.72 from USD 0.66. Revenue grew by 8%, hitting USD 25.18 billion, up from USD 23.35 billion. Tesla’s GAAP gross margin improved to 19.8% from 17.9%, and its operating margin increased to 10.8%, compared to 7.6% the previous year. Analysts had predicted revenue of USD 25.34 billion, GAAP EPS of USD 0.57, and adjusted EPS of USD 0.58.As a result, Tesla shares surged 8.4% in after-hours trading in New York, after closing down 2.0% earlier at USD 213.65.
“We achieved strong Q3 results, with growth in vehicle deliveries both sequentially and year-over-year, leading to record third-quarter volumes,” the company said in a statement. Tesla also noted that its cost of goods sold per vehicle hit a record low of USD 35,100, boosting profitability. “To further accelerate the global shift to sustainable energy, we must make EVs affordable for everyone, ensuring total cost of ownership per mile is competitive with all forms of transportation.” The company also confirmed it is on track to introduce new, more affordable models, with launches expected in the first half of 2025. “Despite ongoing macroeconomic challenges and others scaling back EV investments, we remain committed to expanding our vehicle and energy product portfolio, cutting costs, and investing in critical AI projects and production capacity. We believe these initiatives will position us to capitalize on the continued transformation of the transportation and energy sectors.” Tesla expects strong vehicle deliveries in the coming quarter and anticipates higher volumes for the full year, building on a robust third quarter.