Tesla (TSLA) reported mixed third-quarter results after the bell on Wednesday, but shares jumped in after-hours trading as investors cheered earnings results, higher gross margins and news that Tesla’s cheaper EV is on track for production next year. CEO Elon Musk also added on the earnings call that Tesla’s volume growth could reach 20-30% next year.

For the quarter, Tesla reported revenue of $25.18 billion versus $25.4 billion according to the Bloomberg consensus, higher than the $25.05 billion it reported in the second quarter and also higher than the $23.40 billion Tesla posted a year ago. reported ago. Tesla posted adjusted earnings per share of $0.72 versus $0.60 expected, on adjusted net income of $2.5 billion and free cash flow of $2.9 billion.

The closely watched gross margin figure came in at 19.8%, much higher than the expected 16.8%.

Tesla shares rose nearly 11% in after-hours trading.

“We delivered strong results in the third quarter with growth in vehicle deliveries both sequentially and year-over-year, resulting in record volumes in the third quarter,” the company said in its earnings statement. “Preparations are still underway for our range of new vehicles – including more affordable models – which we will launch in the first half of 2025.”

Earlier this month, Tesla announced third-quarter deliveries that slightly exceeded expectations, sending shares lower.

Tesla said it delivered 462,890 vehicles in the third quarter, up 6.4% quarter-over-quarter, to mark the first quarter of delivery growth this year. The figures also came in ahead of the 435,059 electric vehicles the company delivered last year. But Wall Street had expected Tesla to get closer to 463,897, according to Bloomberg.

“The revamped Model 3 ramp continued successfully in the third quarter, with higher overall production and lower cost of goods sold quarter-over-quarter. Cybertruck production increased sequentially and achieved a positive gross margin for the first time,” Tesla said in its report.

Tesla said it expects vehicle deliveries to achieve “slight growth” in 2024. CEO Elon Musk added during the conference call that 20-30% growth next year is possible, although he called this a “best bet.”

Ahead of Tesla’s third-quarter unveiling, shares fell about 11% since Tesla unveiled its robotaxi, called the Cybercab, at its flashy “We, Robot” event from the Warner Bros. studio. in Burbank, California, on October 10.

Investors and analysts wanted more details about Tesla’s “We, Robot” event at the Cybercab itself and detailed testing plans, along with questions about the development of Tesla’s sub-$30,000 EV, called the Model 2.

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During the conference call, Musk said the Cybercab would reach volume production, not just start production, by 2026, and that the company is aiming for 2 million Tesla Cybercabs per year.

Tesla and Musk added that the company remains on track to produce new vehicles, including likely a cheaper electric car, in the first half of next year.

Musk also said the company is testing calling robotaxis and operating them in the San Francisco area for employees, with safety drivers at the wheel.

Tesla reported that its power generation and storage business achieved a record gross margin of 30.5% in the third quarter, and the company expects business to more than double year over year by 2024.

This story is developing. Check back for updates.

Pras Subramanian is a reporter for Yahoo Finance. You can follow him X and on Instagram.

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