Bank of America has reported that Tesla (TSLA, Financial) exceeded expectations in its third-quarter earnings, with a Non-GAAP earnings per share of $0.72, surpassing both the bank and market predictions of $0.59 and $0.60 respectively. The strong performance was driven by enhanced automotive gross margins and increased regulatory credits.
Tesla’s Full Self-Driving (FSD) business contributed $326 million this quarter. Despite robust automotive operations, this was partially offset by a decrease in the average price per vehicle. However, Tesla’s automotive revenue and gross profit levels exceeded expectations, and its energy and services segments also performed better than anticipated.
Cost-saving measures positively impacted the company’s sales, general, and administrative expenses. The adjusted total operating profit margin reached 11%, surpassing the bank’s projection of 7.5%. Consequently, the bank reaffirmed its “Buy” rating for…
