TESLA REPORTS BETTER THAN EXPECTED PROFIT, SENDING SHARES HIGHER

Tesla has posted a forecasting-beating profit in the third quarter, breaking a recent streak of disappointing earnings for the electric carmaker.

The Austin, Texas-based company on Wednesday reported net income of $2.2bn for the July-to-September period, up 17 percent year on year.

Revenue rose to $25.18bn, up 8 percent from $23.35bn from a year earlier.

Tesla’s strong earnings were driven in large part by revenue from sources other than vehicle sales.

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Revenue from charging services, sales of storage batteries, and sales of carbon emissions credits to other carmakers all registered double-digit growth. 

The earnings, which bested market analysts’ expectations, marked a turnaround from double-digit falls in profit during the previous two quarters.

In a conference call about results, Tesla CEO Elon Musk predicted that vehicle sales would grow 20 to 30 percent next year barring “negative external events”.

“No EV company is even profitable, and to the best of my knowledge, there was no EV division of any company, of any existing auto company that is profitable,” Musk said.

“So it is notable that Tesla is profitable despite a very challenging automotive environment.”

Musk also said Tesla’s “full self-driving” system would soon drive more safely than humans and the company would roll out driverless robotaxi services for the public next year in California and Texas.

Despite its name, Tesla’s “full self-driving” mode currently requires the presence of a human driver at all times to be ready to intervene.

Tesla shares jumped 12 percent in after-hours trading. Before the earnings results, the company’s shares were down about 14 percent for 2024.