Tesla showed signs of a turnaround in Q3 2024, posting better-than-expected profits and announcing plans for more affordable electric vehicles (EVs) as the company finishes wrapping up its latest earnings call.

According to Tesla’s earnings call, the company reported earnings of 72 cents per share, exceeding analyst expectations of 60 cents and marking a 9% increase from the same quarter last year. Net income reached $2.2 billion, up 17% year-over-year, while revenue grew 8% to $25.182 billion, slightly below analysts’ projections of $25.46 billion.

With achieving results from the company’s cost-cutting initiatives, Tesla reduced its cost of goods sold per EV to a record low of around $35,100. This efficiency boost helped drive the company’s automotive gross margin (excluding regulatory credits) to 17.05%, surpassing Wall Street’s expectation of 14.9%.

Moreover, EV deliveries also displayed improvement, with Tesla delivering 462,890 units in Q3, a 6% increase from the same period last year. This growth comes after two consecutive quarters of declining deliveries and follows the company’s strategy of offering discounts and incentives to attract a broader buyer base.

During the recent earnings call, Elon Musk shared several developments for the future. He projected that EV sales are expected to grow between 20% and 30% in 2025, reflecting the continued demand for EVs and the company’s expanding market presence.

Musk also announced that new, more affordable EV models are set to launch in the first half of 2025, aiming to attract a broader range of buyers and enhance accessibility to EV technology.

In addition to these plans, the company recently celebrated a momentous milestone, having produced a total of 7 million EVs. As a result, this achievement underlines the progress made in production and the increasing adoption of EVs globally.

Furthermore, production of the Cybercab robotaxi is aimed to start in 2026, which marks a pivotal step in the company’s vision for autonomous EV transportation.

Tesla’s Chief Financial Officer Vaibhav Taneja cautioned that maintaining current margin levels would be “challenging” in Q4 2024. However, the company remains focused on expanding its EV lineup and making strategic investments in AI projects and production capacity.

Notably, Tesla’s Cybertruck achieved a positive gross margin for the first time this quarter and ranks as the third best-selling EV in the United States (U.S.), behind Tesla’s own Model 3 and Model Y.

As Tesla approaches the end of 2024, it needs to deliver around 514,925 units in Q4 2024 to surpass last year’s record, having already delivered 1.29 million EVs in the first nine months of the year.

Read More: Tesla’s “We Robot” Event Reveals The Future Of Autonomous EVs With Cybercab And Robovan

While Tesla navigates through the latter part of 2024, the company aims to capitalize on its recent successes and plans. With strong financial results, a goal to expanding its EV lineup, and a strategic focus on affordability, Tesla is set to further enhance its market presence as it strives to exceed last year’s performance.

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