Tesla has refocused on the automotive sector after a disappointing robotaxi event and has achieved a significant earnings beat, surpassing market expectations.

The company's automotive business has seen a stabilized gross profit margin, reaching its highest level since last year. Additionally, Tesla's free cash flow has surged to $2.74 billion, the highest it has been in two years.

Looking ahead, Tesla anticipates a slight increase in vehicle sales in 2024 compared to 2023, which goes against current market expectations of a decline. This projection suggests that Tesla is on track to deliver over half a million vehicles in a single quarter for the first time, indicating a potential rebound in sales performance.