New York, (APP – UrduPoint / Pakistan Point News – 24th Oct, 2024) Tesla shares surged Wednesday after reporting a jump in profits as increased auto sales and lower expenses offset the drag from a drop in vehicle prices.
Elon Musk’s electric vehicle company reported third-quarter profits of $2.2 billion, up 17 percent from the year-ago period on an eight-percent increase in revenues to $25.2 billion.
The results broke a string of recent Tesla earnings that have seen the high-flying company report lower profits year-over-year as competition intensifies among automakers.
“We delivered strong results in Q3 with growth in vehicle deliveries both sequentially and year-on-year, resulting in record third-quarter volumes,” Tesla said in a news release.
Tesla had previously announced a six-percent rise in vehicle sales.
A major question coming into Wednesday was its ability to manage profitability after slashing vehicle prices over the last year or so in response to increased offerings from other companies in the electric vehicle (EV) industry.
Tesla’s results benefited from lower cost per vehicle stemming from a dip in material costs and freight expenses, Tesla said.
Tesla said it expects “slight growth” in 2024 deliveries “despite ongoing macroeconomic conditions.”
In July, the company said volume growth “may be notably lower” than in 2023, when deliveries surged 38 percent.
Shares of Tesla jumped 8.1 percent in after-hours trading.
