Tesla Drives Innovation: Surprising Profits Amid Material Cost Drop

Tesla announced expectations for slight growth in vehicle deliveries this year and reported better-than-expected profit margins for Q3 as raw material costs declined. This news led to a 7% after-hours share price rise. The company focuses on expanding its product lineup, cost reduction, and AI investments.

Tesla has announced expectations for slight growth in vehicle deliveries for this year and revealed a higher-than-anticipated profit margin for the third quarter. This development came alongside falling raw material costs, driving a 7% increase in share value after hours.

Despite challenging macroeconomic conditions, Tesla surpassed profit predictions and continues to emphasize expanding its vehicle and energy product lineup, cost reductions, and crucial investments in AI projects and production capacity, as stated by the company.

The growth in vehicle deliveries contributed to record volumes, while Tesla also reported its second-highest quarter for regulatory credit revenues. Vehicle sales profit margins, disregarding credits, rose to 17.05% from the previous 14.6%, with labor and material costs at their lowest ever. The introduction of the Cybercab and a 20-seater van further showcases Tesla's commitment to advancing autonomous technology.

(With inputs from agencies.)