Tesla Inc (NASDAQ:TSLA) stock rallies 18.90% (As on October 24, 11:27:12 AM UTC-4, Source: Google Finance) after the company surpassed Wall Street estimates for earnings in the third quarter and projected a slight increase in deliveries for the current year, reflecting a rebound in demand for its electric vehicles.  It reiterated plans to start production of more affordable models in the first half of 2025, saying it projects 50% growth next year over its 2023 production volumes. Tesla said its Cybertruck, which it first delivered late last year, has reached profitability for the first time, thanks in part to increases in production for the futuristic pick-up truck. The company’s third-quarter automotive gross margin, excluding regulatory credits, was 17.1%, up from the previous quarter, when it was 14.6%.

Moreover, Tesla said it delivered 462,890 vehicles in Q3, up 6.4% quarter over quarter, to mark the first quarter of delivery growth this year. The numbers also came in ahead of the 435,059 EVs the company delivered in the year-ago period. But Wall Street had expected Tesla to deliver closer to 463,897, according to Bloomberg.

Further, Tesla attributed its profit gains to its higher delivery volumes and also booming sales of regulatory credits to other carmakers needing help to meet their emissions requirements. Revenue from regulatory credits came to $739 million in the three months ended September 30, a record for the period but below the $890 million it earned in the second quarter. The company also released more details about its Robotaxi, the vehicle without controls such as pedals or a steering wheel that was unveiled earlier this month. Tesla said it will use a new unboxed manufacturing technique for the vehicle, which is different from a traditional production line in that parts are assembled simultaneously in dedicated areas and put together at the end. Tesla also continued to expand its charging network, after the high-profile layoff of much of its supercharging team earlier this year. The company added 2,800 new stalls in the third quarter, a 22% increase from the previous year.

TSLA in the third quarter of FY 24 has reported the adjusted earnings per share of 72 cents, beating the analysts’ estimates for the adjusted earnings per share of 60 cents, according to Bloomberg consensus. The company had reported the adjusted revenue of $25.18 billion in the third quarter of FY 24, missing the analysts’ estimates for revenue of $25.4 billion.