Elon Musk's Tesla said Wednesday it expects deliveries to rise slightly this year and reported better-than-expected third-quarter profit margins, sending shares up 5% after-hours.
“Tesla delivered strong results in the third quarter, with vehicle deliveries increasing both quarter-over-quarter and year-over-year, resulting in record third-quarter sales,” Tesla said in a statement. said.
“We also noted that our regulatory credit income was the second highest in the quarter.”
Third-quarter profits rose 17% to $2.2 billion.
He also said that the cost of goods sold, or raw material costs, per vehicle had fallen to an all-time low of about $35,100.
Earlier this month, Tesla announced that vehicle deliveries in the September quarter rose more than 6% from a year earlier, marking the first increase after a decline in the January-June period.
The company cut prices last year, resulting in a sharp drop in profit margins.
This spring, the company pivoted to a strategy that offers cheaper financing options and discounts, but analysts say margin outflows could be contained over the next few quarters.
Prices for the raw materials used to make EV batteries are falling, and Tesla said costs will come down this year as a result, with the effect likely to wane over time.
Earlier this month, Tesla unveiled a robotaxi product called CyberCab and a 20-seat self-driving van to accelerate the development of autonomous technology, including its humanoid robot Optimus.
Sales for the July-September period were $25.18 billion, compared to expectations of $25.37 billion, according to data compiled by LSEG.
Sales for the corresponding quarter of 2023 were reported at $23.35 billion.
Third-quarter adjusted earnings were 72 cents per share, beating the average estimate of 58 cents.
The company's profit margin for the July-September period was 19.8%, beating expectations of 17.3%, according to 21 analysts surveyed by LSEG.
In the second quarter, it was 18%.
