Tesla beat analyst expectations for its third-quarter results, improving investor sentiment, which has lagged since the disappointing introduction of its robotaxi prototype earlier this month.

Tesla reported net income of $2.2 billion in the quarter ended September 30, up 17% from the same quarter last year. Operating income rose 54% to $2.7 billion, with an operating margin of 10.3%.

The company reported lower costs per vehicle sold, including lower raw material costs, freight costs and duties, as well as the impact of continued cost reduction efforts. Vehicle deliveries also rose 6% – to 462,900 units – lifting Tesla’s third-quarter revenue to $25.2 billion, up 8% from the year-earlier quarter.

Tesla said its cost of goods sold (COGS) per vehicle fell to its lowest level ever, around $35,100.

While the latest quarterly results were interpreted as relatively good news for Elon Musk’s company, they come after the disappointment of the rollout of the Cybercab robotaxi earlier this month. Some analysts argue that the robotaxi project will be less profitable – or that profits will be further in the future – than a lower-price, higher-volume Tesla car based on current technology might be.

“Tesla Gains Earnings on Higher Sales and Lower Costs” was originally created and published by Just Auto, a brand owned by GlobalData.

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