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Saturday, November 16, 2024

Tesla increases profits to a record high of 389%

The gross profit of the company soared 77% on an annual basis to $3.7 billion in the third quarter.

American electric carmaker Tesla achieved its best-ever net income and profit in the third quarter of this year, according to a statement.

Tesla’s net income jumped 389% year-on-year to $1.62 billion in July-September this year, the statement said on Wednesday.

The company recorded $13.8 billion in total revenues, up 57% in the same period. This owed to the growth in vehicle deliveries and other parts of the business, it noted.

The gross profit of the company soared 77% on an annual basis to $3.7 billion in the third quarter.

Read more: Tesla under scrutiny amid safety concerns over assisted driving features

Planning to expand its manufacturing capacity as quickly as possible, the company said “over a multi-year horizon, we expect to achieve 50% average annual growth in vehicle deliveries,” depending on equipment capacity, operational efficiency as well as the capacity and stability of the supply chain.

Tesla safety concerns

The US highway safety watchdog has pushed Tesla for details about its driver-assistance systems, specifically whether it has barred some people testing the features from reporting possible safety concerns.

As part of a preliminary probe opened after a series of accidents with emergency vehicles, the regulator on Tuesday ordered Elon Musk’s electric car company to provide information about confidentiality agreements with drivers who have been testing a new feature since October 2020.

The feature, called Full Self-Driving (FSD), is designed to allow the cars to detect stop signs and turn at intersections, while the existing Autopilot function is mainly used to manage speed and keep the vehicle in a lane.

The National Highway Traffic and Safety Administration (NHTSA) cited reports saying the confidentiality agreements “allegedly limit the participants from sharing information about FSD that portrays the feature negatively.”

The agency relies in part on driver-reported feedback to assess potential safety defects.

Read more: China’s biggest car manufacturer to take Tesla head on

“Any agreement that may prevent or dissuade participants in the early access beta release program from reporting safety concerns to NHTSA is unacceptable,” the agency wrote in a letter to Tesla, setting a November 1 deadline for the company to respond.

Anadolu with additional input by GVS News Desk