Did Tesla Just Turn the Profit Corner?

Core Insights - Tesla reported solid third-quarter results with profits exceeding expectations, leading to a 22% increase in stock price [1][3][10] - The company appears to have turned a profitability corner, with significant improvements in per-vehicle gross profit and production costs [6][8][9] Financial Performance - For Q3, Tesla generated $25.2 billion in revenue, translating to earnings of $0.72 per share, an 8% increase in revenue year-over-year [3] - Total vehicle deliveries reached 462,890, slightly below expectations but up from 435,059 in the same quarter last year [3][4] Cost Management - Tesla achieved a reduction in production costs to an average of $34,544 per vehicle, resulting in an increase in per-vehicle gross profit from $8,269 in Q2 to $8,698 in Q3 [6] - This marks the first sequential growth in per-vehicle gross profit since Q1 2022, indicating improved cost management [6][9] Future Outlook - The company is expected to see unit sales growth of 20% to 30% next year, which will necessitate increased production capacity [10] - The current trajectory of profitability alongside output growth is promising for both current and prospective shareholders [8][10]