Tesla Posts Surprise $2.17 Billion 3Q Profit

Tesla’s third-quarter net income rose 17.3% compared to the previous year, driven by stronger electric vehicle (EV) sales. CEO Elon Musk predicted 20% to 30% sales growth in 2025, Tom Krisher reported for the Associated Press.

The earnings came despite price cuts and low-interest financing that boosted sales of Tesla’s aging vehicle lineup during the quarter. I Photo: Tesla X

This strong performance reversed Tesla’s trajectory after seeing declining sales and profits in the first two quarters of the year.

In its letter to investors, Tesla forecast slight growth in vehicle deliveries for 2024, surpassing the 1.8 million vehicles delivered globally in 2023. Tesla reported a profit of $2.17 billion from July through September, exceeding the $1.85 billion profit it posted in the same period in 2023.

The earnings came despite price cuts and low-interest financing that boosted sales of Tesla’s aging vehicle lineup during the quarter.

It marked Tesla’s first year-over-year quarterly profit increase of 2024, a year that had previously been marked by falling sales and prices.

Revenue for the quarter rose 7.8% to $25.18 billion, slightly below Wall Street analysts' estimates of $25.47 billion, according to FactSet. However, Tesla’s adjusted earnings of 72 cents per share exceeded analysts' expectations of 59 cents per share.