Tesla shares jump as third-quarter profit beats Wall Street estimates

NEW YORK - Tesla shares surged on Oct 23 after the electric vehicle (EV) maker reported a jump in profit, as increased auto sales and lower expenses offset the drag from a drop in vehicle prices.

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The company surpassed Wall Street estimates for earnings in the third quarter and projected a slight increase in deliveries for the current year, reflecting a rebound in demand for its vehicles.

It reiterated plans to start production of more affordable models in the first half of 2025, saying it projects 50 per cent growth in 2025 over its 2023 production volumes.

The company, led by Mr Elon Musk, reported third-quarter earnings of US$2.2 billion (S$2.9 billion), up 17 per cent from the year-ago period, as revenue rose 8 per cent to US$25.2 billion.

The results broke a string of recent Tesla earnings that have seen the high-flying company report lower profits year on year as competition intensifies among automakers.

The outspoken Mr Musk offered a bullish outlook on Tesla's prospects, pointing to the strong results as evidence the company's ambitious vision is being realised.

"Tesla is focused on building the future of energy, transport, robotics and artificial intelligence, and this is a time when others are just focused on managing around near-term trends," Mr Musk said on an earnings call.