Tesla reported strong third-quarter earnings, exceeding analysts’ estimates despite falling slightly short on revenue expectations. The company’s stock rose by 10.7% in premarket trading following the earnings release. Revenue increased by 8% year-over-year, with automotive regulatory credit revenue contributing significantly to profit margins. Automotive revenue saw a slight increase, while energy generation and storage revenue saw a substantial jump. CEO Elon Musk expressed optimism about future growth, predicting a 20% to 30% increase in vehicle deliveries next year due to lower cost vehicles and advancements in autonomy.
Musk emphasized that all of Tesla’s cars moving forward would be autonomous, with plans to produce 2 million Cybercabs annually and offer driverless ride-hailing services by 2025. The company’s Full Self-Driving Supervised system brought in $326 million in revenue during the quarter. Tesla continues to face increasing competition, especially in China, from companies such as BYD and Geely, as well as legacy automakers like Ford and General Motors in the U.S.
The earnings report followed a robotaxi event and came ahead of the presidential election, which has been a focus for Musk. The stock had been down prior to the earnings release, as Musk’s support for former President Donald Trump has raised questions among shareholders about the potential impact on Tesla. Despite the stock’s recent performance, Musk remains optimistic about Tesla’s future and intends to launch more affordable models in the coming years.
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