Tesla profit for the third quarter increased 17 percent from a year ago, the company said Wednesday, as strong growth in its battery storage and other businesses more than made up for a modest increase in car sales.
The company said it earned $2.2 billion from July through September, compared with $1.9 billion in the same period last year. Sales were $25.2 billion, compared with $23.4 billion a year earlier. But Tesla warned investors to expect only “slight growth” in the number of cars it will deliver this year.
Tesla shares jumped about 8 percent in extended trading on Wednesday as the company’s third quarter results were stronger than investors had expected.
Much of Tesla’s strong performance came from things other than selling vehicles. Sales of storage batteries, which are used by utilities, businesses and homeowners, jumped 52 percent in the quarter from a year earlier, and revenue from services like charging climbed 29 percent.
The company also brought in $739 million from selling regulatory credits to other automakers that need them in order to meet emissions regulations. That number was up 33 percent than from a year earlier.
Tesla, which is led by Elon Musk, accounts for almost half the electric cars sold in the United States and is a bellwether for electric car demand. Battery-powered vehicles, which have no tailpipe emissions, are considered critical to fighting climate change.
Slower overall growth in electric car sales this year can largely be attributed to Tesla, which this month reported a 6 percent increase in the number of vehicles it sold in the third quarter after sales fell in the first six months of the year.
Recent data has hinted at a pickup in electric car sales as companies like General Motors and Hyundai introduce new models. But no automaker except Tesla accounts for more than 10 percent of the U.S. electric car market.
Tesla depends on the Model 3 sedan and Model Y sport utility vehicle for most of its sales. But both have changed only modestly in recent years. Except for the Cybertruck, which has sold in limited numbers, Tesla has not introduced a completely new vehicle since 2020.
To increase sales, the company has offered low-interest car loans. The strategy has been effective but has weighed on its profit. Analysts say Tesla needs new models to restore the strong sales growth it enjoyed before this year.
The company said Wednesday that, in fact, new models would be coming next year. “Preparations remain underway for our offering of new vehicles — including more affordable models — which we will begin launching in the first half of 2025,” Tesla said in a statement.
That will reassure investors who are more preoccupied with the short term, said Will Rhind, chief executive of GraniteShares, an investment firm that offers funds aimed at Tesla.
Mr. Musk has focused recently on plans for a self-driving “cybercab,” while saying little about a more affordable Tesla. “There are a lot of potentially incredible things that the company is doing,” Mr. Rhind said. “But,” he added, “there’s an element of caution. The cybercab, while it’s a great idea, is not a reality yet.”
Mr. Musk’s vocal support of former President Donald J. Trump, and the billions of dollars he is spending to support the candidate’s presidential campaign are probably not helping Tesla sales, either. Surveys show that liberals are more likely to buy electric cars than conservatives, many of whom share Mr. Trump’s negative views of such vehicles.
While Tesla sells far more electric vehicles than any competitor, its market share in the United States slipped to 48.2 percent in the third quarter from 49.8 percent in the second quarter, according to Kelley Blue Book, which tracks the industry.
In China, Tesla has faced stiff competition from BYD and other domestic automakers that are introducing new models at a faster rate, often at significantly lower prices. In Europe, Tesla and other carmakers have suffered from a slowdown in electric car sales after Germany and other countries cut financial incentives for buyers.
The post Tesla Reports Robust Profit Increase on Strength of Battery Storage Sales appeared first on New York Times.
