2 weeks ago
11
Tesla reported adjusted earnings of 72 cents per share, surpassing analysts’ predictions. The company also plans to boost production by 50 per cent next year compared to 2023 levels. A key part of this plan involves rolling out more affordable EV models read more
 "Tesla posts higher profit on delivery growth, fares better than expected in earnings call")
The earnings news gave Tesla’s stock a boost in post-market trading, with shares rising 7.5 per cent to $229.50. However, the stock remains down 14 per cent for the year so far, reflecting broader challenges in the automotive sector. Image Credit: Reuters
Tesla Inc. delivered better-than-expected results in its third-quarter earnings call, surprising Wall Street and hinting at further growth in the near future. Despite challenges in the electric vehicle (EV) market, the company posted solid profits and indicated that deliveries are set to increase through the remainder of the year.
Tesla reported adjusted earnings of 72 cents per share, surpassing analysts’ predictions. The company also plans to boost production by 50 per cent next year compared to 2023 levels. A key part of this plan involves rolling out more affordable EV models, with production expected to begin in the first half of 2025.
Profits surge amid growing demand
The cost of Tesla’s vehicles has long been a sticking point for consumers, with the cheapest model currently priced at $42,490 before subsidies.
On average, the starting price of its 2024 models exceeds $63,000, according to Kelley Blue Book. However, Tesla is actively working to reduce manufacturing costs. In the latest quarter, the cost of goods per vehicle dropped to an all-time low of $35,100.
Tesla’s quarterly report also outlined its preparations to launch more budget-friendly models. These new vehicles will incorporate features from both Tesla’s current platforms and next-generation technology, allowing them to be produced on the same lines as the company’s existing models.
Tesla hinted that the new models could begin launching in the first half of 2025, though there’s still some uncertainty over whether they will hit the market that same year.
Strong performance despite setbacks
In addition to its plans for expansion, Tesla showed resilience in the face of recent challenges. The company dealt with the fifth recall of its much-anticipated Cybertruck and faced scrutiny from a federal investigation into its Full Self-Driving feature.
Nevertheless, Tesla managed to increase its net income by 8 per cent, bringing it to $2.51 billion for the quarter, while sales rose 2 per cent year-over-year. The results marked an end to Tesla’s streak of four consecutive quarters of missed earnings expectations.
The earnings news gave Tesla’s stock a boost in post-market trading, with shares rising 7.5 per cent to $229.50. However, the stock remains down 14 per cent for the year so far, reflecting broader challenges in the automotive sector.
Tesla also signalled confidence in maintaining its delivery momentum, projecting a slight increase in deliveries for 2024 despite ongoing economic pressures. The company noted that it expects another strong quarter to close out the year, reinforcing optimism about sustained demand for its EVs.
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
English (US) ·