DETROIT (AP) — Tesla's net profit rose 17.3% in the third quarter from a year earlier as electric vehicle sales rose.

The Austin, Texas-based company said Wednesday that it earned $2.17 billion from July to September, higher than its profit of $1.85 billion in the same period in 2023.

The profit came despite price cuts and low-interest financing that helped boost sales of the company's aging vehicle lineup. It was the company's first year-over-year quarterly profit increase in 2024.

FactSet said revenue rose 7.8% to $25.18 billion in the quarter, falling short of Wall Street analysts who had estimated it at $25.47 billion. Excluding one-time items, Tesla earned 72 cents per share, beating analyst expectations of 59 cents.

Shares of Tesla Inc. rose nearly 9% in trading after the closing bell on Wednesday.

Earlier this month, Tesla said it sold 462,890 vehicles from July to September, up 6.4% year over year and the first quarterly increase in 2024. The sales figures were better than analysts expected.

Despite sales declines in the first two quarters, Tesla said in its letter to shareholders that it expected modest growth in vehicle deliveries for the full year despite “ongoing macroeconomic conditions,” particularly high interest rates. Last year the company sold 1.8 million electric vehicles worldwide.

The letter said Tesla was on track to begin producing new vehicles, including more affordable models, in the first half of next year, which investors had expected. The new vehicles will use parts from current models and be manufactured on the same assembly lines as Tesla's current model lineup, the letter said.

The new vehicles were not identified. CEO Elon Musk said the company is working on a car that will cost about $25,000, as well as a purpose-built robotaxi.

By using parts from existing models and the current manufacturing system, Tesla will not achieve the previously expected cost reductions. However, the company said this method should enable growth of more than 50% over production in 2023.

Tesla said it has reduced the cost of goods sold per vehicle to its lowest level ever, about $35,100. “Despite ongoing macroeconomic headwinds and other setbacks in electric vehicle investments, we remain focused on expanding our vehicle and energy product range, reducing costs and making important investments in (artificial intelligence) projects and production capacity,” the letter said.

The company's widely watched gross profit margin, the percentage of sales it gets to keep after expenses, rose to 19.8%, its highest in a year, but still below the high of 29.1% in the first quarter 2022.

During the quarter, Tesla's revenue from regulatory credits purchased from other automakers unable to meet government emissions targets was $739 million, the second-highest quarter in company history.