In the third quarter, Tesla reported an automotive gross margin of 17.1 percent, excluding regulatory credits, showing a significant increase compared to the previous quarter, which was 14.6 percent. The company attributed this increase to higher delivery volumes and increased sales of regulatory credits to other automakers.
During the three months ending September 30, Tesla earned regulatory credits totaling $739 million, a record for that period, although lower than the $890 million in the previous quarter. Additionally, the company continued to expand its charging network after laying off its supercharger team earlier this year.
Tesla surpassed Wall Street's earnings estimates for the third quarter, with adjusted earnings of 72 cents per share, above the average analyst estimate. The company projects a slight increase in deliveries for the current year, reflecting a rebound in demand for its electric vehicles.
"Despite the current macroeconomic conditions, we expect to achieve a slight growth in vehicle deliveries in 2024," Tesla stated in a press release. The company reported that its Cybertruck reached profitability for the first time and reiterated its plans to start production of more affordable models in the first half of 2025.
Tesla's shares rose by up to 9.9 percent in after-hours trading on Wednesday, after closing regular trading down 14 percent for the year. The company indicated that it expects another strong quarter in terms of deliveries following the record achieved in the third quarter and anticipates higher volumes for the entire year. In the third quarter, Tesla added 2,800 new positions, representing a 22 percent increase compared to the previous year.
