Tesla reported impressive third-quarter earnings that exceeded analyst expectations, although revenue fell slightly short. The stock surged 10.7% in premarket trading.
Revenue rose by 8% from the previous year to $23.35 billion, with net income climbing to $2.17 billion. The company’s profitability was boosted by $739 million in automotive regulatory credit revenue.
Tesla CEO Elon Musk anticipates a 20-30% growth in vehicle production next year, driven by lower costs and advancements in autonomy.
The company also revealed plans for the production of 2 million Cybercabs annually, with driverless ride-hailing services possibly launching in Texas in 2025.
Despite facing increasing competition, Tesla’s Cybertruck became the third best-selling electric vehicle in the U.S. in the third quarter, achieving a positive gross margin for the first time.
With a focus on Full Self-Driving technology and plans for more affordable models, Tesla is working towards maintaining its market leadership in the rapidly evolving electric vehicle sector.