Tesla’s third-quarter net income increased by 17.3% year-over-year, reaching $2.17 billion, thanks to stronger electric vehicle sales and price cuts.

Despite facing challenges in the auto sales environment, CEO Elon Musk predicts 20% to 30% sales growth next year.

Tesla sold 462,890 vehicles from July to September, a 6.4% increase, though revenue of $25.18 billion fell short of analyst expectations.

The company’s gross profit margin rose to 19.8%, the highest in a year, and revenue from regulatory credits reached $739 million, the Associated Press has reported.

Musk announced plans for affordable new vehicles and showcased a robotaxi prototype, although concerns remain about the readiness of its “Full Self-Driving” system, which is under investigation by U.S. safety regulators following crashes in low visibility conditions.

Written by B,C, Begley