Tesla reported this Wednesday a higher-than-expected profit margin in the third quarter, despite offering lucrative financial incentives to boost demand for its aging range of electric vehicles.
Shares of the Austin-based automaker soared 8.8% in post-closing operations.
Tesla said this month that its deliveries for the quarter to September They grew more than 6% on a year-on-year basis, marking the first quarter of growth after a decline in the January-June period, Reuters reported.
Tesla slashed prices last year, which caused a sharp decline in profit margins.
This spring it changed its strategy to offer cheaper financing options and discounts that, according to analysts, could stop its margin bleeding in the coming quarters.
Prices of raw materials used to make electric vehicle batteries have fallen and Tesla has stated that its costs will be reduced this year and that the effect will diminish over time.
This month, Tesla unveiled its robotaxi called Cybercab, and a 20-passenger self-driving van, in an effort to accelerate the development of its autonomous technologies, including the humanoid robot Optimus.
Tesla: revenue for the July-September quarter
Revenue for the July-September quarter was $25.18 billioncompared to estimates of 25.37 billion, according to data collected by LSEG. In the corresponding quarter of 2023, it recorded sales of $23.35 billion.
Adjusted earnings were 72 cents per share in the third quarter, beating an average estimate of 58 cents.
The company’s profit margin of 19.8% in the July-September period exceeded estimates of 17.3%, according to 21 analysts surveyed by LSEG. That compared to 18% in the second quarter.
Source: Ambito
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