Tesla’s (NASDAQ:TSLA) third-quarter results exceeded Wall Street expectations, pushing shares of the electric vehicle giant up by more than 17% intra-day today. The company reported adjusted net income of $2.5 billion, an 8% year-over-year increase, surpassing Wall Street predictions of $2.1 billion. This rise in profitability was supported by reduced operating expenses and a price cut that fueled demand.
Revenue for the quarter grew by 8% to $25.2 billion, although it narrowly missed market forecasts. More importantly, Tesla’s gross margins excluding credits, improved to 17.05%, up from 14.7% in the previous quarter. This increase was largely driven by lower manufacturing and freight costs.
Looking ahead, Tesla projected “slight growth” in vehicle deliveries for 2024. CEO Elon Musk expressed optimism for next year, predicting that cost reductions and potential lower interest rates could drive vehicle sales growth by 20% to 30%. Additionally, Tesla reiterated its plans for launching more affordable models, with expectations to introduce them in the first half of 2025.