Tesla reported Wednesday third-quarter results that beat Wall Street estimates, driven by improved margins and said it expects to achieve “slight” growth in deliveries this year as the electric vehicle maker looks to put the ‘EV winter’ in the rearview mirror.
Tesla Inc (NASDAQ:TSLA) was up more than 8% in aftermarket trading.
For Q3, the company reported adjusted earnings per share of $0.72 on revenue of $25.18 billion, compared with Wall Street estimates of $0.60 a share and $25.4B, respectively.
The bottom line was boosted by a rise in automotive sales to $20.02B from $19.63B a year earlier and stronger margins.
Gross margins excluding credits, a closely watched metric, rose to 17.05% in Q3 from 14.7% in the prior quarter.
Tesla’s energy business, meanwhile, achieved record gross margin of 30.5% in Q3 as strong Powerwall deployments offset lower Megapack volumes.
“Energy storage deployments are expected to more than double year-over-year in 2024,” the company said.
The EV maker’s services and other business grew gross profit over 90% in Q3 year-on-year, the company said.
Looking ahead, the company said it expects to achieve “slight” growth in vehicle deliveries in 2024.
The more sanguine outlook on deliveries outlook followed a bumpy period for the EV maker as concerns about demand and competition in China weighed, pressuring its shares down 14% year to date.
Tesla also said that preparations to launch new vehicles remain underway and continues to expects to roll out more affordable models in the first half of 2025.
