Tesla's stock surged more than 12 per cent in after-hours trading on Wednesday, despite reporting earnings that missed analysts' estimates, as the company confirmed plans to begin producing cheaper models by mid-2025.
The company also announced it is testing a ride-hailing service in the Bay Area, San Francisco, expected to begin operations next year.
The Texas-based electric vehicle maker, which is struggling with weak sales and rising competition in the Chinese market, said the new models will be produced on the same factory lines as its current line-up.
This approach, according to Tesla, will allow the company to increase vehicle volumes in a more spending-efficient manner during uncertain times.
“This should help us fully utilise our current expected maximum capacity of close to three million vehicles, enabling more than 50 per cent growth over 2023 production before investing in new manufacturing lines,” the company said.
Tesla did not announce the names of the new models or the expected price range. It had announced its plan to introduce cheaper vehicles to attract more customers in April this year.
The company’s chief executive and co-founder Elon Musk said that his “best guess” is that vehicle growth will reach between 20 per cent and 30 per cent in 2025, boosted by “lower-cost vehicles” and the “advent of autonomy”.
He said the company has also developed an in-house ride-hailing app that some employees have been able to use in California this year.
“You can request [an autonomous] ride and it will take you anywhere in the Bay Area … we do have a safety driver for now,” Mr Musk said during the earnings call.
He said the company is expected to introduce the service to the public next year in California and Texas.
Tesla plans to reduce costs to make EVs cheaper
Tesla said the cost of goods sold per vehicle came down to its lowest ever at nearly $35,100, a figure derived by dividing its car sales revenue by the number of new vehicle deliveries in the quarter.
To continue accelerating the world’s transition to sustainable energy, Tesla said it needs to “make EVs affordable for everyone, including making total cost of ownership per mile competitive with all forms of transportation”.
“It's great to see Tesla getting down to business when it really matters,” Thomas Monteiro, senior analyst at Investing.com, told The National.
“The improving numbers across the board signal the company may have finally found a nice, sweet spot for the pricing versus production costs equation, which has been the main issue for stock performance since last year.”
Tesla's stock is one of the worst performers in the S&P 500 index, which has jumped nearly 22.3 per cent since the start of the year.
Its shares closed almost 2 per cent down at $213.65 on Wednesday, giving the company a market value of $669.47 billion.
But after the earnings announcement and disclosure of new plans, the stock jumped 12.1 per cent in after-market hours to trade at $239.50
The company's shares have dropped nearly 14 per cent since the start of the year. In April, the car maker announced plans to cut its workforce by more than 10 per cent.
Mr Musk said the move would help the company to become “lean, innovative and hungry for the next growth phase cycle”.
Tesla missing analysts’ expectations
Tesla reported a 17 per cent yearly jump in third-quarter net profit to nearly $2.2 billion. It was 46.6 per cent up on a quarterly basis.
Revenue during the July-September period increased 8 per cent to nearly $25.2 billion, missing analysts’ expectations of $25.3 billion. It was the ninth straight quarter the company reported $20 billion or more in sales.
Earnings per share grew 17 per cent to 62 cents exceeding expectations of 42 cents based on a survey of analysts by LSEG.
Tesla's profit margins were driven by $739 million in automotive regulatory credits revenue during the quarter.
Automotive regulatory credits are government-issued incentives that Tesla earns by exceeding emissions standards, which it can sell to other car makers that fall short of meeting the regulatory standards. This allows those companies to avoid fines for non-compliance.
“The market got the message it needed to hear … Tesla's margins are improving right when they needed to – that is, ahead of a better interest environment globally. This means the company may have more firepower to get the innovation it desperately needs both on the production and product sides faster and better than the competition,” Mr Monteiro said.
The company’s automotive revenue surged 2 per cent to $20 billion, while energy generation and storage revenue expanded 52 per cent to nearly $2.4 billion in the last quarter.
Tesla said its operating income increased by 54 per cent yearly to more than $2.7 billion in the last quarter, while operating expenses decreased 6 per cent to nearly $2.3 billion.
Earlier this month, at the company's long-anticipated robotaxi event, Mr Musk displayed the new Cybercab autonomous concept vehicle. He said production will start in 2026 and the vehicles will be available for customers to buy for less than $30,000. They will cost 20 cents a mile to operate, he said.
In a shareholder letter on Wednesday, Tesla announced that as of October 22, it had produced 7 million vehicles. The company said its newest model, the cybertruck, became the third best-selling EV in the US, trailing only the Model 3 and Model Y.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Company%20Profile
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Infiniti QX80 specs
Engine: twin-turbocharged 3.5-liter V6
Power: 450hp
Torque: 700Nm
Price: From Dh450,000, Autograph model from Dh510,000
Available: Now
Notable cricketers and political careers
- India: Kirti Azad, Navjot Sidhu and Gautam Gambhir (rumoured)
- Pakistan: Imran Khan and Shahid Afridi (rumoured)
- Sri Lanka: Arjuna Ranatunga, Sanath Jayasuriya, Tillakaratne Dilshan (rumoured)
- Bangladesh (Mashrafe Mortaza)
On Instagram: @WithHopeUAE
Although social media can be harmful to our mental health, paradoxically, one of the antidotes comes with the many social-media accounts devoted to normalising mental-health struggles. With Hope UAE is one of them.
The group, which has about 3,600 followers, was started three years ago by five Emirati women to address the stigma surrounding the subject. Via Instagram, the group recently began featuring personal accounts by Emiratis. The posts are written under the hashtag #mymindmatters, along with a black-and-white photo of the subject holding the group’s signature red balloon.
“Depression is ugly,” says one of the users, Amani. “It paints everything around me and everything in me.”
Saaed, meanwhile, faces the daunting task of caring for four family members with psychological disorders. “I’ve had no support and no resources here to help me,” he says. “It has been, and still is, a one-man battle against the demons of fractured minds.”
In addition to With Hope UAE’s frank social-media presence, the group holds talks and workshops in Dubai. “Change takes time,” Reem Al Ali, vice chairman and a founding member of With Hope UAE, told The National earlier this year. “It won’t happen overnight, and it will take persistent and passionate people to bring about this change.”
more from Janine di Giovanni
Why your domicile status is important
Your UK residence status is assessed using the statutory residence test. While your residence status – ie where you live - is assessed every year, your domicile status is assessed over your lifetime.
Your domicile of origin generally comes from your parents and if your parents were not married, then it is decided by your father. Your domicile is generally the country your father considered his permanent home when you were born.
UK residents who have their permanent home ("domicile") outside the UK may not have to pay UK tax on foreign income. For example, they do not pay tax on foreign income or gains if they are less than £2,000 in the tax year and do not transfer that gain to a UK bank account.
A UK-domiciled person, however, is liable for UK tax on their worldwide income and gains when they are resident in the UK.
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
THE DEALS
Hamilton $60m x 2 = $120m
Vettel $45m x 2 = $90m
Ricciardo $35m x 2 = $70m
Verstappen $55m x 3 = $165m
Leclerc $20m x 2 = $40m
TOTAL $485m
The%20Genius%20of%20Their%20Age
%3Cp%3EAuthor%3A%20S%20Frederick%20Starr%3Cbr%3EPublisher%3A%20Oxford%20University%20Press%3Cbr%3EPages%3A%20290%3Cbr%3EAvailable%3A%20January%2024%3C%2Fp%3E%0A
UAE tour of the Netherlands
UAE squad: Rohan Mustafa (captain), Shaiman Anwar, Ghulam Shabber, Mohammed Qasim, Rameez Shahzad, Mohammed Usman, Adnan Mufti, Chirag Suri, Ahmed Raza, Imran Haider, Mohammed Naveed, Amjad Javed, Zahoor Khan, Qadeer Ahmed
Fixtures: Monday, first 50-over match; Wednesday, second 50-over match; Thursday, third 50-over match
Players Selected for La Liga Trials
U18 Age Group
Name: Ahmed Salam (Malaga)
Position: Right Wing
Nationality: Jordanian
Name: Yahia Iraqi (Malaga)
Position: Left Wing
Nationality: Morocco
Name: Mohammed Bouherrafa (Almeria)
Position: Centre-Midfield
Nationality: French
Name: Mohammed Rajeh (Cadiz)
Position: Striker
Nationality: Jordanian
U16 Age Group
Name: Mehdi Elkhamlichi (Malaga)
Position: Lead Striker
Nationality: Morocco
