Austin: Tesla reported its third-quarter earnings on Wednesday, revealing a strong performance that exceeded analysts' earnings expectations, despite revenue falling slightly short. The company's stock surged 12 percentage in extended trading following the announcement.
Key financial highlights:
Earnings per Share (EPS): Adjusted EPS stood at 72 cents, surpassing Wall Street’s estimate of 58 cents.
Revenue: Tesla generated 25.18 billion dollars, compared to expectations of $25.37 billion.
Year-Over-Year Revenue Growth: Revenue rose 8 percent from 23.35 billion dollars in the same quarter last year.
Net Income: The company reported a net income of approximately 2.17 billion dollars, or 62 cents per share, up from 1.85 billion dollars, or 53 cents per share, a year earlier.
Profit margins and credit revenue:
Tesla’s profit margins were significantly bolstered by 739 million dollars in automotive regulatory credit revenue during the quarter. Automakers are required to obtain a specific number of regulatory credits each year, and Tesla, which produces only electric vehicles, has excess credits available for sale.
Automotive Revenue: Increased by 2 percent to 20 billion dollars from 19.63 dollars billion year-over-year, remaining flat since late 2022.
Energy Generation and Storage Revenue: Experienced a remarkable 52 percent increase, reaching 2.38 billion dollars.
Services and Other Revenue: Jumped 29 percent to 2.79 billion dollars, driven by non-warranty repairs of Tesla vehicles.
Overall, Tesla’s strong earnings performance and growth in various revenue segments reflect its ongoing expansion in the electric vehicle and renewable energy markets, despite facing some challenges in meeting revenue expectations.
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