Business

Tesla shares jump as profit tops Wall Street expectations

Elon Musk’s electric vehicle maker predicts ‘slight growth’ in deliveries this year

Tesla’s quarterly profit beat analysts’ estimates and it forecast a “slight growth” in deliveries this year, pushing the stock of the world’s largest electric vehicle maker more than 8 per cent higher in after-hours trading.. Photograph: David Paul Morris/Bloomberg
Tesla’s quarterly profit beat analysts’ estimates and it forecast a “slight growth” in deliveries this year, pushing the stock of the world’s largest electric vehicle maker more than 8 per cent higher in after-hours trading.. Photograph: David Paul Morris/Bloomberg
Stephen Morris
Wed Oct 23 2024 - 21:33

Tesla’s quarterly profit beat analysts’ estimates and it forecast a “slight growth” in deliveries this year, pushing the stock of the world’s largest electric vehicle maker more than 8 per cent higher in after-hours trading.

Adjusted net income for the quarter rose 8 per cent from a year ago to $2.5 billion (€2.3 billion), exceeding expectations for $2.1 billion, according to a filing from the Austin, Texas-based company on Wednesday. Revenue rose 8 per cent to $25.2 billion, slightly undershooting the average $25.4bn estimate.

“Despite ongoing macroeconomic conditions, we expect to achieve slight growth in vehicle deliveries in 2024,” Tesla said. “Plans for new vehicles, including more affordable models, remain on track for start of production in the first half of 2025.”

Earlier this month, Tesla reported that deliveries rose 6.4 per cent in the third quarter to 462,890 vehicles globally, driven by a surge in Chinese sales that offset weak demand in Europe. While the company retained its position as the top electric vehicle maker ahead of China’s BYD, the figures fell slightly short of analysts’ expectations.

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Chief executive Elon Musk has made a strategic pivot towards autonomous driving, artificial intelligence and robotics, telling investors that these technologies would soon be Tesla’s main revenue sources and drive up its valuation. However, the company still makes four-fifths of its revenue from selling cars and has not released a new mass consumer vehicle since 2020. - Copyright The Financial Times Limited 2024

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