Tesla posts surprise $2.2 bln net profit in third-quarter

DETROIT

Tesla’s third-quarter net income rose 17.3 percent compared with a year ago as its electric vehicle sales rose.

The company 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 the company's aging vehicle lineup.

It was the company's first year-over-year quarterly profit increase of 2024.

Revenue in the quarter rose 7.8 percent to $25.18 billion, falling short of Wall Street analysts who estimated it at $25.47 billion.

Earlier this month Tesla said it sold 462,890 vehicles from July through September, up 6.4 percent from a year ago and the first quarterly increase of 2024.

The sales numbers were better than analysts had expected.

Even with sales drops in the first two quarters, Tesla said in its letter to shareholders that it expects slight growth in vehicle deliveries for the full year despite “ongoing macroeconomic conditions,” mainly high interest rates. Last year the company sold 1.8 million EVs worldwide.

The letter said that Tesla is on track to start production of new vehicles, including more affordable models, in the first half of next year, something investors had been looking for. The new vehicles will use parts from its current models and will be made on the same assembly lines as Tesla’s current model lineup, the letter said.

The new vehicles were not identified. CEO Elon Musk has said the company is working on a car that will cost about $25,000 as well as a purpose-built robotaxi.