Tesla ( TSLA ) reported mixed third-quarter results after the bell on Wednesday, but the stock jumped in after-hours trading as investors cheered on earnings beats, higher gross margins, and news that Tesla’s cheaper electric car is on track for production next year. .
For the quarter, Tesla reported revenue of $25.18 billion versus $25.4 billion according to the Bloomberg consensus, which is higher than the $25.05 billion it reported in Q2 and also exceeds the $23.40 billion Tesla reported a year ago. Tesla reported adjusted EPS of $0.72 versus $0.60 expected, on adjusted net income of $2.5 billion and free cash flow of $2.9 billion.
The closely watched gross profit margin was 19.8%, much higher than the expected 16.8%.
Tesla shares rose nearly 8% in after-hours trading.
“We delivered strong results in the third quarter with growth in vehicle deliveries both sequentially and year-over-year, resulting in record volumes in the third quarter,” the company said in its earnings statement. “Preparations are still underway for our offering of new vehicles – including affordable models – which we will begin launching in the first half of 2025.”
Earlier this month, Tesla reported third-quarter deliveries that slightly beat expectations, sending the stock lower.
Tesla said it delivered 462,890 vehicles in the third quarter, up 6.4% quarter-on-quarter, marking the first quarter of delivery growth this year. These numbers were also ahead of the 435,059 electric cars the company delivered in the same period last year. But Wall Street was expecting Tesla to offer roughly 463,897, according to Bloomberg.
“Model 3 refreshes continued successfully in the third quarter with higher total production and lower cost of goods sold on a quarter-over-quarter basis. Cybertruck production increased sequentially and achieved positive gross margin for the first time,” Tesla said in its report.
Tesla said it expects vehicle deliveries to achieve “slight growth” in 2024.
Ahead of Tesla’s third-quarter unveiling, shares were down nearly 11% since Tesla unveiled a robotaxi, dubbed the Cybercab, at a flashy “We, Robot” event from studio Warner Bros. Television. In Burbank, California, on October 10.
The advent and launch of a cheaper electric vehicle is what many analysts and industry observers believe will spur the next phase of electric vehicle sales, as CEO Elon Musk has said before. During their second-quarter report, Tesla and Musk said the company remains on track to produce new vehicles, likely including a cheaper electric vehicle, in the first half of next year.
Investors and analysts were left wanting more details from Tesla’s “We, Robot” event about the Cybercab itself and detailed testing plans, along with questions about the development of Tesla’s sub-$30,000 car, dubbed the Model 2.
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