Tesla's Steady Climb: Profits Soar Amid Strategy Shift

Tesla expects slight growth in vehicle deliveries for the year, reporting a higher-than-expected profit margin in Q3. Cost of goods sold per vehicle decreased, and recent strategic changes helped stabilize margins. Tesla's revenue was slightly below estimates, yet adjusted profit exceeded predictions.

Tesla anticipates slight growth in vehicle deliveries by the year's end, reporting a better-than-expected profit margin for Q3, which boosted its shares by 5% after trading hours.

The company achieved record third-quarter volumes, largely due to increased vehicle deliveries year-on-year and recognized its second-highest quarter of regulatory credit revenues.

In Q3, cost of goods per vehicle dropped to an all-time low of approximately $35,100. Tesla also adjusted its pricing strategy last year to stabilize margins, offering cheaper financing and discounts. As raw material costs for EV batteries decline, Tesla expects continued reduction in production costs.

Earlier, Tesla introduced its Cybercab robotaxi and a self-driving van, while advancing autonomous technology. Despite missing revenue estimates, Tesla's Q3 adjusted profit per share exceeded expectations, highlighting a notable profit margin improvement.

(With inputs from agencies.)