Tesla, the leading electric car manufacturer globally, has outperformed analysts’ predictions by posting an 8% increase in its quarterly profit, which has propelled its stock up more than 8% in after-market trading.
The adjusted profit for the quarter was $2.5 billion (£2.3 billion), outdoing the anticipated $2.1 billion the analysts expected. This information was released in a financial document by the Texas-based company on Wednesday. It also recorded an 8% increase in revenue, totaling $25.2 billion, although this fell slightly below the average estimation of $25.4 billion.
Tesla believes that despite the ongoing global economic challenges, they anticipate a marginal uptick in car deliveries for 2024. The company also reassured that their initiatives for new, more budget-friendly car models are on schedule to begin production in the first half of 2025.
Earlier in the month, Tesla announced a global 6.4 percent increase in vehicle deliveries in the third quarter, equating to 462,890 vehicles. This surge was primarily driven by an increase in sales in China which compensated for the reduced demand in Europe. Tesla maintained its leading position in the electric vehicle market, surpassing China’s BYD, despite the data slightly missing analysts’ estimates.
Elon Musk, the CEO, is shifting his focus towards autonomous driving, artificial intelligence, and robotics, assuring investors that these sectors will soon become the primary sources of revenue and boost Tesla’s market value. However, the company still earns 80% of its income from car sales and hasn’t launched a new mainstream consumer car since 2020.