Tesla said it expects to achieve slight growth in vehicle deliveries in 2024 despite ongoing macroeconomic conditions.

Tesla (NASDAQ: TSLA) delivered an earnings surprise in the third quarter, thanks to lower vehicle production and material costs.

The US electric vehicle (EV) maker reported revenue of $25.18 billion in the third quarter, up 7.85 percent from the year-ago quarter while down 1.25 percent from the second quarter, according to its earnings report released today.

The quarterly revenue was below analysts' expectations of $25.43 billion in a Bloomberg survey.

Previously released data showed that Tesla delivered 462,890 vehicles worldwide in the third quarter, up 6.40 percent year-on-year and up 4.26 percent from the second quarter.

In the third quarter, Tesla sold 181,883 vehicles in China, up 30.27 percent year-on-year and up 24.67 percent from the second quarter, contributing 39.29 percent of global deliveries.

Tesla's revenue from its automotive business was $20.02 billion in the third quarter, up about 2 percent year-on-year while down 6.5 percent from the second quarter.

Revenue earned from the sale of carbon credits was $739 million, up 33.4 percent year-on-year. Revenue from the energy generation and storage business was $2.38 billion, up 52.4 percent year-on-year.

Tesla reported third-quarter non-GAAP diluted earnings per share (EPS) of $0.72, up 9.1 percent year-on-year and higher than analysts' expectations of $0.60.

Gross profit for the third quarter was $5 billion, up 19.6 percent year-on-year and up 9.15 percent from the second quarter.

It had a gross margin of 19.8 percent in the third quarter, above analysts' expectations of 16.8 percent. The figure was 17.9 percent in the year-ago quarter and 18.0 percent in the second quarter.

Gross margin in the automotive business rose to 17.1 percent, above analysts' expectations of 14.8 percent.

Tesla said lower average costs per vehicle, including lower raw material costs, freight and duties, were partly behind the higher earnings, although this was still impacted by lower average selling prices for vehicles.

The company said it expects to achieve slight growth in vehicle deliveries in 2024 despite ongoing macroeconomic conditions.

It also reiterated its goal of launching more affordable models in the first half of 2025.

Tesla delivers 462,890 cars globally in Q3, higher than BYD's BEV sales