Tesla earnings summary: Shares rise 12% after earnings decline

• Tesla exceeded Wall Street earnings expectations in its third-quarter earnings results.
• The stock rose 12% in after-hours trading at the end of the call with analysts.
• Elon Musk expects Tesla to receive regulatory approval for autonomous driving in California and Texas next year.

Tesla posted a quarterly profit that exceeded Wall Street expectations when it reported its earnings on Wednesday.

The electric car maker reported earnings per share of $0.62 – a significant improvement over analyst expectations of $0.51.

Revenue came in slightly below analyst expectations at $25.18 billion for the quarter, an increase of 8% year over year. Tesla’s gross margin, which is closely watched by Wall Street, rose to 19.8%.

The Cybertruck became profitable and the company said that “plans for new vehicles, including more affordable models, remain on track for production to start in the first half of 2025.”

The stock rose 12% in after-hours trading at the end of Tesla’s analyst call Elon Musk and executives spent most of the time reviewing prepared remarks or answering previously submitted questions from retail investors. The executives answered two questions from analysts who dialed in during the call.

Earlier this month, Musk unveiled Tesla’s highly anticipated self-driving Cybercab robotaxi at his “We, Robot” event. While the event generated significant hype for Tesla, the driverless taxi plan was met with skepticism about its feasibility and competition with rivals.

The rollout of the vehicle, which Tesla expects to begin production in 2026, depends on Tesla receiving regulatory approval for its Full Self-Driving software for fully autonomous driving.

Musk said he expects Tesla to win regulatory approval for fully autonomous driving in Texas and California next year and called for a path to national approval for fully self-driving cars. Musk referred to Trump’s proposed Commission on Government Efficiency, saying, “If there is a Department of Government Efficiency, I will try to help make that happen.”

In the meantime, Tesla said adoption of its FSD beta software had increased since the Cybercab event.

The Tesla CEO also discussed cheaper vehicles, which Tesla says he is working on. Musk said people shouldn’t expect Tesla to make a Cybercab model with a steering wheel and pedals, saying a “normal $25,000 model is pointless” and “silly.”

The company is all-in on autonomous vehicles, Musk said.