Tesla, the American electric vehicle company, reported its third-quarter net profit, exceeding market expectations. According to Tesla’s earnings report released on the 23rd (local time), the adjusted earnings per share (EPS) for the third quarter was $0.72, significantly surpassing Wall Street’s average estimate of $0.58 compiled by financial information company LSEG.
Under Generally Accepted Accounting Principles (GAAP), the net income was $2.167 billion, a 17% increase compared to the same period last year. Operating profit also increased by 54% from a year ago, reaching $2.717 billion. The operating profit had been declining for four consecutive quarters in previous quarters but has now returned to an upward trend.
The operating profit margin stood at 10.8%, which is 3.2 percentage points higher than the same period last year (7.6%).
Revenue reached $25.182 billion, an 8% increase compared to the same period last year, although it fell short of Wall Street’s estimate of $25.37 billion. By business segment, automotive revenue was $20.016 billion, up 2% from the same period last year. Revenue for the energy generation and storage segment increased by 52% from a year ago to $2.376 billion, while the service and other segments saw a 29% rise, reaching $2.79 billion.
In the report, Tesla stated, “Both production and delivery volume grew compared to the same period last year, and on the 22nd, we produced our 7 millionth vehicle.” Additionally, they mentioned that “the Cybertruck became the third best-selling electric vehicle in the U.S. in the third quarter, following Model Y and Model 3.”
Tesla also expressed a positive outlook for annual electric vehicle sales despite ongoing macroeconomic conditions, anticipating a slight growth in vehicle deliveries by 2024. Regarding new car launches, they reiterated their plan to offer new models, including more affordable ones, with a release expected in the first half of 2025. Tesla announced plans to offer driverless car-hailing services in Texas and California as early as next year.
According to CNBC, Elon Musk, Tesla’s CEO, stated at the earnings announcement that “next year’s car sales are expected to increase by 20-30%.” Previously, a FactSet survey suggested that Tesla’s sales would increase by 15% to reach 2.04 million units next year.
Tesla’s stock closed at $213.65, down 1.98% from the previous day in regular trading, but surged to $239.07, an increase of 11.90%, in after-hours trading (at 7:30 PM Eastern Time).
Reporter: Kim Bitna