Tesla Shares Soar After Company Announces Better-Than-Expected Profit Of

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SpaceX and Tesla founder Elon Musk participates in a town hall-style meeting to promote early and absentee voting at Ridley High School on October 17, 2024 in Folsom, Pennsylvania. (Photo by Anna Moneymaker/Getty Images)

OAN Staff James Meyers
3:34 PM – Wednesday, October 23, 2024

Elon Musk’s company Tesla said on Wednesday that it expects to achieve slight growth in vehicle deliveries this year and reported a higher-than-expected profit margin for the third quarter, sending shares up 5% after hours.

“We delivered strong results in Q3 with growth in vehicle deliveries both sequentially and year-on-year, resulting in record third-quarter volumes,” Tesla said in a statement.

“We also recognized our second-highest quarter of regulatory credit revenues.”

Third-quarter profit climbed 17% to $2.2 billion.

The cost of goods sold or raw material costs, per vehicle fell to its lowest level ever at close to $35,100.

This comes after Elon Musk’s company said earlier this month that its September-quarter deliveries increased by more than 6% on a year-over-year basis, marking the first quarter of growth after a decline in the January-June period.

Tesla cut their prices last year causing a decline in profit margins.

The company responded by changing its strategy to offering cheaper financing options and discounts that analysts have said could slow its costs over the coming quarters.

Earlier this month, Tesla unveiled its robotaxi product, known as the Cybercab, and a 20-seater self-driving van as it pushes to accelerate development of its autonomous technologies including the Optimus humanoid robot.

Revenue for the July-September quarter was $25.18 billion, compared with estimates of $25.37 billion, according to data put together by LSEG.

It reported sales of $23.35 billion in the same quarter of 2023.

Meanwhile, adjusted profit was 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 was higher than estimates of 17.3%.

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