Tesla Shares Soar on Profits Beat and Plans for Cheaper EV Next Year

Although Tesla’s third-quarter results were mixed, investors praised the company’s profits beat, greater gross margins, and the news that its cheaper EV is expected to go into production next year, which caused the stock to soar. Elon Musk, the CEO, also stated on an earnings call that Tesla’s volume growth may reach 20–30% in the upcoming year. Tesla’s stock fell when it revealed earlier this month that its third-quarter deliveries fell just short of forecasts.

Tesla Reports Strong Q3 Sales and Earnings, New Affordable Models Coming in 2025

Tesla reported sales of $25.18 billion for the quarter, which was more than the $25.05 billion it reported in the second quarter and higher than the $23.40 billion it reported a year earlier, compared to the $25.4 billion predicted by Bloomberg. With an adjusted net income of $2.5 billion and a free cash flow of $2.9 billion, Tesla reported an adjusted EPS of $0.72, as opposed to the anticipated $0.60. The highly anticipated gross margin of 16.8% was significantly lower than the closely watched figure of 19.8%.

We delivered strong results in Q3 with growth in vehicle deliveries both sequentially and year-on-year, resulting in record third-quarter volumes. Preparations remain underway for our offering of new vehicles — including more affordable models — which we will begin launching in the first half of 2025.

company’s earnings deck

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