Elon Musk’s Tesla said Wednesday it expected to achieve modest growth in vehicle deliveries this year and reported a bigger-than-expected profit margin for the third quarter, sending shares up 5% after hours.
“We delivered strong third quarter results with sequential and year-over-year vehicle delivery growth, resulting in record third quarter sales,” Tesla said in a statement.
“We also recognized our second-highest quarter of regulatory loan revenue.”
Third-quarter profit rose 17% to $2.2 billion.
It also said the cost of goods sold – or cost of raw materials – fell to an all-time low of about $35,100 per vehicle.
Tesla said earlier this month that its deliveries would take place in the September-quarter increase of more than 6% On a year-on-year basis, the January–June period marked the first quarter of growth after a decline.
The company cut prices last year, leading to a sharp decline in profit margins.
This spring, it changed its strategy to offering cheaper financing options and discounts, which analysts say could hurt its margins in coming quarters.
Prices for the raw materials used to make EV batteries are falling and Tesla has said its costs will fall this year, with the impact diminishing over time.
Earlier this month, Tesla unveiled Robotaxi product, called CyberCaband a 20-seat self-driving van as it looks to accelerate the development of its autonomous technologies, including the Optimus humanoid robot.
Revenue in the July-September quarter was $25.18 billion, compared with estimates of $25.37 billion, according to data compiled by LSEG.
It reported sales of $23.35 billion in the same quarter of 2023.
Adjusted profit in the third quarter was 72 cents a share, beating the average estimate of 58 cents.
The company’s profit margin was 19.8% in the July-September period, beating estimates of 17.3%, according to 21 analysts surveyed by LSEG.
This compared with 18% in the second quarter.
