Tesla posted its third quarter results on Wednesday, exceeding Wall Street predictions thanks to stronger margins. The electric vehicle giant indicated it anticipates moderate growth in deliveries by year’s end, aiming to leave the so called “EV winter” behind.
Tesla (NASDAQ: TSLA) saw its stock surge over 8% in after-hours trading following the announcement.
For the third quarter, Tesla reported adjusted earnings of $0.72 per share on $25.18 billion in revenue, outperforming analyst expectations of $0.60 per share and $25.4 billion in revenue.
A key driver behind the strong earnings was an increase in automotive sales, which rose to $20.02 billion from $19.63 billion in the same period last year, as well as improved gross margins. Excluding credits, gross margins reached 17.05%, up from 14.7% in the previous quarter.
Tesla’s energy division also performed well, achieving a record gross margin of 30.5%, driven by strong demand for Powerwall, despite lower Megapack production.
“Energy storage deployments are expected to more than double year over year in 2024,” Tesla stated.
The company’s services and other business segments showed impressive growth, with gross profits increasing by more than 90% year over year in the third quarter.
Looking ahead, Tesla forecasted modest growth in vehicle deliveries for 2024. This outlook comes after a challenging year marked by concerns over demand and rising competition in the Chinese market, which has contributed to a 14% decline in Tesla’s stock so far this year.
Despite the challenges, Tesla remains on track with plans to introduce new vehicles, including more affordable models expected to launch in the first half of 2025.
