(Bloomberg) — Tesla Inc. surpassed Wall Street estimates for earnings in the third quarter and projected a slight increase in deliveries for the current year, reflecting a rebound in demand for its electric vehicles.
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The company on Wednesday reported adjusted earnings of 72 cents per share for the quarter, above the average analyst estimate. It reiterated plans to start production of more affordable models in the first half of 2025, saying it projects 50% growth next year over its 2023 production volumes.
Shares of the company soared as much as 9.9% in postmarket trading Wednesday after closing regular trading down 14% for the year.
Tesla indicated it expects another strong quarter of deliveries after a record third quarter, saying it anticipates higher volumes for the full year. It won’t be easy, given the slowdown in deliveries Tesla posted in the first half of the year, and the carmaker will need to significantly increase sales in the fourth quarter to surpass — or even match — 2023’s sales.
“Despite ongoing macroeconomic conditions, we expect to achieve slight growth in vehicle deliveries in 2024,” Tesla said in a statement.
Tesla said its Cybertruck, which it first delivered late last year, has reached profitability for the first time, thanks in part to increases in production for the futuristic pick-up truck. The company’s third-quarter automotive gross margin, excluding regulatory credits, was 17.1%, a sharp rise from the previous quarter, when it was 14.6%.
Tesla attributed those profit gains to its higher delivery volumes and also booming sales of regulatory credits to other carmakers needing help to meet their emissions requirements. Revenue from regulatory credits came to $739 million in the three months ended Sept. 30 — a record for the period but below the $890 million it earned in the second quarter.
Tesla continued to expand its charging network, after the high-profile layoff of much of its supercharging team earlier this year. The company added 2,800 new stalls in the third quarter, a 22% increase from the previous year.
(Updates share trading; adds details on profitability and the company’s charging network.)
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