Tesla posts $2.17 billion third-quarter profit, up 17.3% from a year ago

Tesla’s third-quarter net income rose 17.3% compared with a year ago as its quarterly electric vehicle sales rose for the first time this year.

The Austin, Texas, company said Wednesday that it made $2.17 billion from July through September, more than the $1.85 billion profit it posted in the same period of 2023.

The profit came despite price cuts and low-interest financing that helped boost sales of Tesla’s aging vehicle lineup. It was the company’s first year-over-year quarterly profit increase of 2024, a year plagued by falling sales and prices.

Revenue in the quarter rose 7.8% to $25.18 billion, falling short of Wall Street analysts who estimated it at $25.47 billion, according to FactSet. Excluding one time items, Tesla made 72 cents per share, beating analyst expectations of 59 cents.

Shares in Tesla Inc. soared more than 9% in trading after Wednesday’s closing bell.

Earlier this month Tesla said it sold 462,890 vehicles from July through September, up 6.4% from a year ago. The sales numbers were better than analysts had expected.

Tesla said in its letter to shareholders that it expects slight growth in vehicle deliveries for the full year despite “ongoing macroeconomic conditions,” mainly high interest rates. Last year the company sold 1.8 million EVs worldwide. The company’s widely watched gross profit margin, the percentage of revenue it gets to keep after expenses, rose to 19.8%, the highest in a year, but still smaller than the peak of 29.1% in the first quarter of 2022.

Apple, Goldman Sachs told to pay $89 million for mishandling Apple Card

A federal regulator on Wednesday ordered Apple and Goldman Sachs to pay a combined $89 million for deceiving consumers and mishandled transaction disputes of Apple Card customers.

The Consumer Finance Protection Bureau orders point to “customer service breakdowns and misrepresentations” around Apple and Goldman’s credit card partnership. Apple failed to send tens of thousands of Apple Card disputes to Goldman, and when such customer disputes were reported, the investment bank did not follow federal requirements for investigating, the agency said.

Apple and Goldman were also accused of misleading people who purchased iPhones and other Apple devices about interest-free payments for the credit card. The CFPB found many customers thought they would automatically get interest-free financing when buying an Apple device with Apple Card, for example, but were instead charged that interest, while Goldman misled consumers about some refund applications.

Home sales weakest in nearly 14 years

Sales of previously occupied U.S. homes slowed in September to the weakest annual pace in nearly 14 years even as mortgage rates eased and the supply of properties on the market continued to climb.

Existing home sales fell 1% last month, from August, to a seasonally adjusted annual rate of 3.84 million, the National Association of Realtors said Wednesday. That marks the second straight monthly decline and the slowest annual sales pace since October 2010 when the housing market was still in a deep slump.

Sales fell 3.5% compared with September last year.

Compiled from Bloomberg, Associated Press reports.