Tesla cuts its costs to build cars, boosting earnings

New York (CNN) — Tesla Wednesday reported an unexpected improvement in earnings for the third quarter, lifting its recently battered shares in after-hours trading.The company reported a 6% increase in sales volume, which was fairly modest for an automaker that not long ago was reporting 50% annual growth in vehicles sold. But the better profit came from success in cutting its cost to build vehicles. The company said the average cost per vehicle built came down to its lowest level ever at $35,100, down about $2,400, or 6%, from a year earlier.Tesla has been leading a price war in the electric vehicle sector, as a response to increased competition, especially from Chinese automakers. Investors had previously sold off Tesla shares (TSLA), disappointed by lack of details at a company event on plans for self-driving robotaxis. But shares rose about 9% in after-market trading following the report.For the quarter Tesla earned $2.5 billion in the quarter, or 72 cents a share, up 8% from a year ago. Analysts’ consensus forecast had been forecasting earnings per share to slip to 59 cents.Tesla’s increased revenue didn’t come from selling cars, however. Revenue from the traditional car company business model was up only 1%...