8:29 am, October 24, 2024
Tesla defied expectations in Q3 to report an improved profit, amid rising sales for the American EV giant.
The Texas-based outfit has announced that it pocketed $2.17bn (£1.68bn) in the three months to the end of September, compared to $1.85bn (£1.42bn) in the same period last year.
Led by Elon Musk, the company also saw net income rise by 17%, with revenues overall rising by 7.8% to $25.18bn (£19.48bn).
Experts say that the impressive result came despite an ‘aging’ vehicle line-up, which was boosted by price cuts and low-interest financing.
It was the company’s first year-on-year quarterly profit increase of 2024 with Tesla also making 72 cents (56p) per share, beating analyst expectations of 59 cents (46p).
Earlier this month Tesla said it sold 462,890 vehicles from July to September, up 6.4% from a year ago and the first quarterly increase of 2024. Those numbers were also better than the results market analysts were predicting.
It comes after a drop in sales in the first two quarters of the year, with bosses putting the previous struggles down to ‘ongoing macroeconomic conditions’, mainly high interest rates.
Last year the company sold 1.8 million EVs worldwide.
In a letter to investors, Tesla said it remains on track to start production of new vehicles, including more affordable models, in the first half of next year.
The new vehicles will use parts from current models and will be made on the same assembly lines, the letter said.
