Beautiful Virgin Islands

Tuesday, Jun 03, 2025

Tesla surprises with a profit in the third quarter

Tesla surprises with a profit in the third quarter

Tesla returned to profitability in the third quarter after two periods of losses surprising Wall Street and sending shares higher in after-market trading, according to earnings reported after market closed Wednesday.

The automaker’s third-quarter results included $143 million in net income, or 80 cents a share, compared with $311 million, or $1.82 a share, in the same year-ago period. Tesla earned $342 million, or $1.91 a share, in the third quarter when adjusted for one-time items.

Analysts had expected a loss of 46 cents per share and revenue of $6.42 billion, according to data compiled by FactSet.

Tesla reported revenue of $6.3 billion, slightly lower than the $6.35 billion generated in the previous period and more than 7.5% lower than the same quarter last year. But it was in line with analysts expectations.

Tesla said it is “highly confident” deliveries will exceed 360,000 deliveries this year.

The third-quarter report sent Tesla shares as high as 17% in after-market trading.

Tesla was also able to improve its automotive gross margins, an important sign of its financial health. The automotive gross margin widened to 22.8% in the third quarter, from 18.9% in the previous period. The automotive gross margin has not yet recovered to the 25.8% of the same quarter in 2018.

Tesla also reported free cash flow (operating cash flow less capital expenditures) of $371 million. The company’s cash and cash equivalents balance increased to $5.3 billion.

“We continue to believe our business has grown to the point of being self-funding,” Tesla said in its earnings report.

The third-quarter report contained a number of positive signs for the automaker and marked a reversal from several consecutive quarters of losses. Tesla said its factory in Shanghai is ahead of schedule and trial production has started.

The Model Y is also ahead of schedule, Tesla said. Production of the Model Y is expected to begin by summer 2020.

Last quarter, Tesla reported a wider-than-expected loss of $408 million, or $2.31 per share, and generated $6.3 billion in revenue in the second quarter despite record deliveries of its electric vehicles.

Other important highlights from the third quarter:

-The average selling price of Tesla’s vehicles have fallen. Tesla noted that the mix of Model 3 variants had increased.


-Automotive revenues were flat at $5.35 billion compared to the previous quarter. The company was able to reach profitability in large part due to cost-cutting measures. Operating expenses were 15% lower than the previous quarter.


-Tesla said it plans to “gradually release nearly $500 million of accumulated deferred revenue tied to Autopilot and Full Self Driving features.”


-Solar installations rebounded 48% to 43 megawatts in the third quarter. However, installations are still 54% lower than the same period last year.


-Energy storage deployments has continued to grow, reaching an all-time high of 477 MWh in the third quarter.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Dutch government falls as far-right leader Wilders quits coalition
Harvard Urges US to Unfreeze Funds for Public Health Research
Businessman Mauled by Lion at Luxury Namibian Lodge
Researchers Consider New Destinations Beyond the U.S.
53-Year-Old Doctor Claims Biological Age of 23
Trump Struggles to Secure Trade Deals With China and Europe
Russia to Return 6,000 Corpses Under Ukraine Prisoner Swap Deal
Microsoft Lays Off Hundreds More Amid Restructuring
Harvey Weinstein’s Publicist Embraces Notoriety
Macron and Meloni Seek Unity Despite Tensions
Trump Administration Accused of Obstructing Deportation Cases
Newark Mayor Sues Over Arrest at Immigration Facility
Center-Left Candidate Projected to Win South Korean Presidency
Trump’s Tariffs Predicted to Stall Global Economic Growth
South Korea’s President-Elect Expected to Take Softer Line on Trump and North Korea
Trump’s China Strategy Remains a Geopolitical Puzzle
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
×