Tesla Inc (NASDAQ: TSLA) which had ended 1.98% lower during the day to close at $213.65, surpassed expectations in the after market trades surging to $239.52.
Tesla, Inc. experienced a significant surge in its share price, climbing 12% following a strong third quarter report. The company disclosed a GAAP operating income of $2.7 billion and a net income of $2.2 billion with a notable increase in quarterly and yearly vehicle deliveries. The company benefited from regulatory credit revenues during a quarter second in profitability after another failed to meet mandatory emission standards. Overall, Tesla achieved record volumes in Q3, contributing to an 8% year-on-year revenue increase, totalling $25.2 billion.
On the financial front, Tesla generated an operating cash flow of $6.3 billion and a free cash flow of $2.7 billion. It raised the total cash and investments to $33.6 billion by quarter-end. The cost of goods sold per vehicle declined to around $35,100 during the quarter, further indicating that the company intended to make its EVs as affordable as possible. Looking ahead, Tesla is proposing to offer new, cheaper variants of its cars in the first half of next year and hopes to provide autonomous transportation options as cheap as any other form of transportation.
In terms of production and capacity, Tesla celebrated the production of its 7-millionth vehicle and saw strong growth across its factories, particularly in Shanghai and Berlin. The Cybertruck has become the third best-selling EV in the U.S., and the Model Y is leading sales in multiple European countries. With enhanced production efficiency and continuing cost reductions, Tesla seems well set to dominate the ongoing growth of the EV market despite all these economic challenges.
Tesla's core technology advancements are also noteworthy, particularly in artificial intelligence. The company released its latest version of Full Self-Driving (FSD) software, enhancing vehicle safety and comfort. Additionally, Tesla is ramping up its energy business, achieving a record gross margin and notable deployments of Powerwall and Megapack products. As the company looks to the future, it expects vehicle deliveries to grow slightly in 2024 and energy storage deployments to double year-over-year, supported by a solid financial position and strategic investments in innovation.
(Source: Company’s Report)
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