Tesla shares jump as EV maker posts better-than-expected profit of $2B
It was the company’s first year-over-year quarterly profit increase of 2024, a year plagued by falling sales and prices.
Tesla’s third-quarter net income rose 17.3% compared with a year ago as its quarterly electric vehicle sales rose for the first time this year.
The Austin, Texas, company said Wednesday that it made $2.17 billion from July through September, more than the $1.85 billion profit it posted in the same period of 2023.
The profit came despite price cuts and low-interest financing that helped boost sales of Tesla’s aging vehicle lineup. It was the company’s first year-over-year quarterly profit increase of 2024, a year plagued by falling sales and prices.
Revenue in the quarter rose 7.8% to $25.18 billion, falling short of Wall Street analysts who estimated it at $25.47 billion, according to FactSet. Excluding one time items, Tesla made 72 cents per share, beating analyst expectations of 59 cents.
Shares in Tesla soared more than 9% in trading after Wednesday’s closing bell.
Earlier this month Tesla said it sold 462,890 vehicles from July through September, up 6.4% from a year ago. The sales numbers were better than analysts had expected.
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