The Downtown Alliance reports the district enjoyed a banner 2025, with more office leasing than in any year since 2019; the population breaking 70,000 for the first time; and apartment conversions gobbling up one after another obsolescent office building.

The leasing trend that started as a trickle through the third quarter turned into a torrent by year’s end. The fourth quarter saw 1.57 million square feet of new deals were completed, bolstering the 2025 total to 4.75 million square feet, double the year before in the district below Chambers Street.

The Downtown Alliance said the district enjoyed a banner year in 2025. Christopher Sadowski

But there might also be movement in the wind that’s not in the business improvement district’s report. The game-changing breakthrough would be a lease for American Express to anchor Two World Trade Center, which would get Larry Silverstein’s long-awaited project off the ground and complete the Trade Center’s planned skyscraper quartet.

 “It’s moving forward,” an insider said told Realty Check. “But after other almost-deals fell through, nobody’s going to say a word until and unless it’s done.”

We’ve reported similar predictions before, “But there’s teeth in it this time,” our source insisted.

Highlights of the Alliance survey include:

* Office vacancy fell to 22.2%, down 2.1% since the end of 2024. Positive absorption got a boost from three mega-deals — Jane Street Capital’s renewal and expansion at 250 Vesey St., BNY Mellon’s 192,915 square-foot deal at One World Trade Center and Moody’s move to 457,730 square feet at 200 Liberty St.

* Tenants new to Downtown  accounted for 592,000 square feet of leasing, five times more than in 2024. Major relocations included the Department of Aging at 14 Wall St., Scale AI’S move to 1 WTC,  Arch Labs’ move to 199 Water St. and Atlantic Pictures at 100 Church St.

* The district’s residential population broke 70,000 — 14,000 more than in 2010 — for the first time. The number will skyrocket with the conversions of dozens of older office buildings, including at 110 Wall St. which will have 1,500 apartments and 222 Broadway with nearly 800 more.

World Trade Center developer Larry Silverstein. Tamara Beckwith

Conversion mania has taken 821,000 square feet of offices off the market in the past few years, the Alliance said.

Meanwhile, several very large office blocks remain up for grabs including at 60 Wall St., where all 1.6 million square feet are on the market.

* In an interesting twist, the MTA is auctioning off 350,000 square feet of air rights above the Fulton Center transit hub, which is underbuilt by zoning.

* Hotel occupancy hit 90%, the highest on record, at 41 properties with nearly 8,000 rooms.

SL Green’s 1185 Sixth Ave, where Carnegie Diner and Joe & the Juice recently opened, is filling up offices as well.

Four new leases totalled nearly 110,00 square feet, bringing the tower to 91% leased.

1185 Sixth Ave is now 91% leased. Stefano Giovannini

The largest deal was for patent litigation law firm Groombridge, Wu, Baughman & Stone, which took nearly 43,000 square feet on the entire 37th floor and part of the 36th floor. JLL’s Lisa Kiell and Andrew Coe represented the tenant. A Newmark team including Brian Waterman repped SL Green.

East West Bank is the newest tenant at Rudin’s 345 Park Ave. The California-based institution took 38,000 square feet for its Manhattan headquarters, expanding and consolidating from 485 and 535 Madison Ave.

The post Downtown Manhattan posts banner year after 9/11, pandemic appeared first on Our Story Insight.

This week, rather than drafting something fresh, let’s take the time to look back at some of the Literary Activism columns you may have missed from the previous several Julys and Augusts. Catch up on what you may have missed, and remember that there is nothing new in the book—it’s just different names and faces trying to get their 15 minutes of manufactured outrage fame. We are seeing the results of these actions play out and if you’ve been watching or engaged, nothing is surprising. That doesn’t mean it isn’t infuriating, disgusting, or not in need to pushback. It just means that the groundwork’s been being laid so it is simply not new in the least.

Given that this is the last long weekend before the new school year truly gears up in the US and in Canada, this is your chance to prepare yourself for what will be a busy, engaged season of fighting against censorship and discrimination and for institutions of democracy like public libraries and schools.

It’s Still Censorship, Even If It’s Not a Book Ban (2024)

“But even if you are not outright banning books, either as a professional in the field or as an outsider, you may still be engaging in censorship. Recall that censorship is the umbrella term for the intentional act of information suppression; it is perpetrated by those with some capacity of power, such as a government body, a private institution, or other group with authority. Catholic Vote — via their “Hide the Pride” campaign — engages in censorship. Moms for Liberty, via their BookLooks database, provokes censorship (especially as they do not believe that meeting the legal definition of obscenity). The information being suppressed can be a whole book, passages from a book, images from a book, and so forth. Materials are being withheld or changed when they’re made available to other people. Book bans are one type of censorship.”

Literary Activism

News you can use plus tips and tools for the fight against censorship and other bookish activism!

What Is Weeding and When Is It Not Actually Weeding? (2024)

“Unfortunately, there are still libraries without collection policies or with policies that have either too little guidance or that have not been updated in several years. This makes them vulnerable to book banners, to administration angling to avoid made-up controversy, to quiet/silent/soft censorship, and more. Without a comprehensive, clear, and updated policy, it is easy to make decisions that harm library users. We already know that many book bans in schools are achieved because districts don’t follow (or didn’t have) their own review policies.”

How To Explain Book Bans to Those Who Want To Understand (2024)

“Here are several talking points you can and should use with the people in your life who may otherwise not understand the complexity and seriousness of book bans happening in school and public libraries. It will not include everything, nor can it. Instead, this is meant to be for people who are eager to listen and learn but may be overwhelmed with where to even begin.”

Age-Restricted Library Cards Aren’t a Solution. They’re a Liability (2023)

“As a response to challenges from the public and/or the state, several public libraries across the country have come to compromises with these bodies in terms of access to collection materials for minors. Among the compromises are library cards with age restrictions. In some facilities, all library cards for those under 18 have been made void and every child now needs to reapply for a new card with parental/guardian restriction choices on them. In other facilities, the new cards based on age are being implemented either when old cards expire or when a new card is requested. Age-restriction cards might look like limiting access to materials for those under 8 in one category, those in the 8-12 category, and/or those in the 12-18 category. Every library going this route is doing so a bit differently.

These cards not only go against everything a public library stands for, but they are a tool of censorship. And while it is a means of avoiding problems from the community or the state — so read this knowing most public libraries going this route are not doing so without a lot of thought — these age-restricted cards are opening up the potential for endless lawsuits at public libraries.”

How To Own A News Cycle (2023)

“One of the checks I make in doing the weekly censorship news research is ensuring that the news comes from a reliable source. This is out of accuracy, of course, as much as it is also about media literacy. As it stands, right-wing “activists” are doing a bang up job of creating a fake controversy, pushing it through the media, keeping their names in the mouths of those outlets, then reaping (fake) benefits from the outrage cycle. Case in point: a news story that popped up earlier this month about the National Education Association and the books they were recommending their teacher members to read over the summer.”

The Impact of Book Bans on Authors (2023)

“In early June, I distributed an author survey to gauge the impact of book bans on authors. The survey specifically sought to look at where or how school and library visit invitations have changed since 2021 — the first year this wave of book bans really caught fire. Are authors seeing their incomes decrease? Are they seeing fewer invites to speak to students out of fear of the content their books include? The results are in.”

(It’s a whole lot worse now, two years later!)

Book Bans May Bring the Return of Child-Free Libraries by Danika Ellis (2023)

“Public libraries are synonymous with children today, with story times and an inviting children’s section considered essential features. Arguments for increasing or maintaining library funding often reference the library’s role in literacy education for kids as well as the many happy memories even adults who no longer frequent the library still hold for childhoods spent there. But public libraries weren’t always welcoming to kids, and a lot of the book banning strategies and the policies they’ve inspired might just have those child-free libraries make a comeback.”

What Rights Do Students Have To Access Books? by Nikki DeMarco (2022)

“School officials need to consider students’ First Amendment rights when making decisions about students’ access to books and other forms of information. Any decisions made to restrict access that are based solely in the officials’ disagreement with views expressed in certain materials, rather than on their educational merit, could open those officials up to timely and costly litigation.”

The Correlation Between Sundown Towns and Book Bans: Forsyth County, GA by Caitlin Hobbs (2022)

“There has been a massive uptick in book banning in this last year, starting in July 2021. Now, this trend has been going on for a while, in clear view if you’ve been paying attention. But recently? It’s gone from a few instances here and there, queer books being quietly removed from school shelves, to city governments firing librarians for not pulling queer books from their shelves, parents demanding schools not use books with the barest hint of anything resembling CRT in teaching, even private companies like Barnes & Noble getting pressured to not sell certain books. All in the name of “protecting children.” But there’s another trend, one that is clear if you’re paying attention and far too obvious once you realize it: a lot of these towns pushing book bans are historically linked to being sundown towns. Especially in Forsyth County, Georgia.”

How to Contact Your Legislators About Book Bans (And Why it Matters) by Susie Dumond (2022)

“I grew up in Arkansas and Oklahoma, and I voted on the opposite side of most issues in those very red states. Although I always showed up for elections, I never felt like my voice could make much of a difference. As a liberal, queer woman, I often figured my legislators didn’t even want me in their state, much less cared about my opinions. But I later moved to Washington, D.C., to study public policy and worked professionally in grassroots advocacy for six years. In that time, I learned that constituent communication is hugely important to shaping policy, even if it doesn’t always look that way from the outside. In annual surveys from the Congressional Management Foundation, over 90% of Capitol Hill staffers report that their bosses are swayed by constituent advocacy. Anecdotally, I’ve seen in person how differently a legislator reacts to a request from a constituent as compared to meetings with lobbyists, researchers, and public policy professionals. When someone from the community a lawmaker represents can tell them firsthand how an issue impacts their district, it can make a world of difference.”

How To Find and Develop a Local Anti-Censorship Group (2022)

“How can you find like-minded people in your community to work with in ending censorship? It can certainly feel overwhelming and, in some instances, impossible, but now is the perfect time to find your allies and work together toward ensuring access to books and information for all.

The Florida Freedom to Read Project, helmed by Jen Cousins and Stephana Ferrell, began as two like-minded parents coming together after the Orange County Public School system removed Gender Queer. From there, they’ve grown their activism work in pushing back against book censorship across the state. Their work has been instrumental in Florida and is a model for how concerned citizens can build similar networks to protect intellectual freedom and the right to access books and information for all. Here’s how to do it (kudos to Cousins and Ferrell for sharing their tips with me).”

How to Address Misinformation and Book Challenges (2022)

“Whether you’re in public schools or libraries or aren’t but support your local public institutions, one thing you can do right now to prepare for the fall and its inevitable wave of “parental rights” discourse and book challenges is get ahead of the misinformation. By openly addressing what has been happening over the last year and setting the record straight, you become the transparent organization that these groups are desperately demanding (even when they then are mad when it happens exactly as they demanded).

Build a guide to the current climate on your website, your social media, and affiliated groups to challenge the narrative being pushed by Moms For Liberty, No Left Turn, and others. Be upfront about the claims being made against libraries and schools in a broad way, then focus it on your local institutions.”

Book Censorship News: August 29, 2025

We’re hardly into a new school year and already have seen an increase in college campus swatting incidents and a school shooting that killed two innocent children. Seeing this comic this week really cracked something inside me (content warning for blood and violence).

• Des Moines Public Schools (IA) worked with the Des Moines Public Library to allow student IDs to be used as library cards for the public library. This is a smart partnership, and of course, book banners with Moms for Liberty are Big Mad.
• The Smithsonian may have begun kneeling to the federal administration even earlier than thought.
• Despite the books having already been reviewed and approved for student use, the same parent who has been challenging books in Beaufort County Schools (SC) has once again complained about 9 more books. They’ll now be restricted from students unless the students have signed parental permission. It’s still censorship. The worst part of this is that this is a victory, since the books aren’t banned and because it’ll slow down the complaining parent from getting those books banned statewide.
• A great piece about where and how the ruling in Florida that disallows book removal (see here) could affect the book banning in Alabama.
• Folks near the Hartland Cromaine District Library (MI) are invited to join an anti-censorship organizing effort in early September. Books in that library are being pink labeled if they have LGBTQ+ content.
• The Redlands Unified School District (CA) is looking for their book banning committee members. If you’re in the area and eligible, consider joining. Recall: California has an anti-book ban law.
• Bellbrook-Sugarcreek High School Library (OH) reopened after closing to review books per new district policy eager to segregate and discriminate against LGBTQ+ books ensuring “parental rights.” Books with “sexual content” and “gender ideology” will be labeled and made inaccessible unless parents opt their students in. Now the middle school in the district is closed for the same reason.
• “A Moscow court has fined the online comic library Mangalib 14 million roubles (approximately $173,500) for hosting seven manga titles that violate Russia’s law against “LGBT propaganda.” In the ruling, Judge Alexandra Anokhina upheld a state assessment that one of the comics constituted a “cultural threat to national security.”” This may be Russia, but it’s the dream state for the American right.
• Jackson County Public Library (NC) saw plenty of folks show up to protest their Pride story time, but they saw far more show up in support.
• Wake County Schools (NC) are now requiring teachers to provide a list of every book available in their classrooms so parents can restrict access to titles for their children. This is also the policy for the school libraries, but going classroom by classroom–upwards of 10,000 classrooms district-wide–is absolutely ridiculous. The goal is, of course, to have classrooms stop having books at all.
• The latest from Florida, where anti-book ban advocates showed up to the Hillsborough School District board meeting to demand answers for just pulling books the state told them to (see here) and where Pasco Schools received four more challenges to materials from one parent. Pasco is reviewing them per their policy.
• Here’s the status of the lawsuit against Idaho’s draconian library censorship bill led by Penguin Random House.
• Petals and Pages of Denver (CO), an indie bookstore, was targeted with homophobic and racist graffiti this week.
• An update on the lawsuit that Michigan school librarian Christine Beachler filed against one of the local Moms for Liberty book banners who spent a lot of time harassing Beachler. “Beachler — the  library media director for the Lowell district, which has fewer than 4,000 students — alleges that Boone has engaged in a smear campaign against her with numerous, ongoing social media posts referring to Beachler with disparaging labels such as a “pedo” or pedophile and “porn-peddling” librarian.  The lawsuit also alleges that Boone posted online a video she filmed during a school library tour with on-screen text asking where the “porn section” was. It says the video was shared numerous times and viewed by more than a million people, with some viewers calling for violence against Beachler.” You can support Beachler here.
• West Shore Schools (PA) want to make it easier to ban books in their district. (Story is paywalled for me and may be for you).
• In what is a pretty standard report on what happened at the latest Buena Vista Board of Education meeting (CO), the discussion of how to word the library’s collection development policy is worth a read. This is how thoughtful, professional adults communicate and address policy. It’s also good food for thought for other libraries which may be using some of the outdated language they found.

The post 12 Book Censorship Posts to Revisit: August 29, 2025 appeared first on Our Story Insight.

Shares fell by more than 3% in after-hours trading after finishing regular trading up 1.7% to $234.11. Both Google-parent Alphabet and Microsoft posted big cloud computing revenue gains this month.

AWS profit margins also contracted. Amazon said they were 32.9% in the second quarter, down from 39.5% in this year’s first quarter and 35.5% a year ago. The second-quarter margin results were at their lowest level since the final quarter of 2023.

AWS, the cloud unit, reported a 17.5% increase in revenue to $30.9 billion. By comparison, sales for Microsoft’s Azure rose 39% and Google Cloud gained 32%. REUTERS

AWS, the cloud unit, reported a 17.5% increase in revenue to $30.9 billion, edging past expectations of $30.77 billion. By comparison, sales for Microsoft’s Azure rose 39% and Google Cloud gained 32%.

After competitors’ strong showing, “AWS is lingering at 17% growth,” said Gil Luria, a D.A. Davidson analyst. “That is very disappointing, even to the point where if Microsoft’s Azure continues to grow at these rates, it may overtake AWS as the largest cloud provider by the end of next year.”

Amazon expects total net sales to be between $174.0 billion and $179.5 billion in the third quarter, compared with analysts’ average estimate of $173.08 billion, according to data compiled by LSEG. The range for operating income in the current quarter was also light. Amazon forecast between $15.5 billion and $20.5 billion, compared with expectations of $19.45 billion.

Both Microsoft and Alphabet cited massive demand for their cloud computing services to boost their already huge capital spending, but also noted they still faced capacity constraints that limited their ability to meet demand.

AWS represents a small part of Amazon’s total revenue, but it is a key driver of profits, typically accounting for about 60% of Amazon’s overall operating income.

While Amazon has poured billions of dollars into AI infrastructure, analysts have said the lack of a strong AI model from AWS is causing concerns that the company could be trailing rivals in AI development. CEO Andy Jassy, above. REUTERS

While Amazon has poured billions of dollars into AI infrastructure, analysts have said the lack of a strong AI model from AWS is causing concerns that the company could be trailing rivals in AI development.

The AWS results are “alarming,” said Dave Wagner, portfolio manager for Aptus Capital Advisers, which holds Amazon shares. “Amazon is an operating leverage story and they had to be able to grow, at least relative to costs. And they haven’t done it.”

The Seattle-based retailer posted online store sales of $61.5 billion, an 11% gain. Advertising sales, a fast-growing segment for Amazon, were up 23% to $15.7 billion.

Investors have been watching Amazon’s e-commerce unit for any signs that tariff-related uncertainty has dashed consumer confidence. US data showed consumer spending rose moderately in June.

Amazon posted online store sales of $61.5 billion, an 11% gain. REUTERS

President Trump’s tariffs have dampened the US retail industry, leaving major retailers and consumer goods companies scrambling to protect their margins or resort to price increases, all while ensuring consumer demand remains intact.

Trump has said the levies will bring manufacturing power and jobs back to the US.

Analysts had said Amazon’s focus on low prices, quick delivery and the sheer number of product categories helped cement its position as the No. 1 e-commerce retailer for US consumers, giving it an edge over rivals.

Amazon has said it was pushing suppliers to pull forward inventories to ensure supply and keep prices as low as possible. Still, prices for goods made in China and sold on Amazon.com have been rising faster than overall inflation, Reuters reported last month.

The company has been trimming jobs in its corporate offices, including at its AWS, books, devices and podcasting units. Its efforts were showing results: headcount fell by 14,000 workers from this year’s first quarter, bringing the total to 1.46 million.

The post Amazon posts weak cloud growth while rivals Google, Microsoft thrive appeared first on Our Story Insight.

Instagram and Facebook have recently blurred, blocked or removed posts from two abortion pill providers. Instagram also suspended the accounts of several abortion pill providers and hid the providers from appearing in search and recommendations.

The actions ramped up in the last two weeks, and were especially noticeable in the last two days, abortion pill providers said. Content from their accounts — or in some cases, their entire accounts — were no longer visible on Instagram.

Meta, which owns Facebook and Instagram, confirmed some account suspensions and the blurring of posts. The company restored some of the accounts and posts on Thursday, after The New York Times asked about the actions.

Meta has been under scrutiny since Mark Zuckerberg, its chief executive, announced sweeping changes to the company’s speech policies earlier this month. Mr. Zuckerberg vowed to loosen restrictions on online speech, causing concerns among misinformation researchers and others that the shifts could cause a spike in hate speech and have other harmful effects.

Meta said the moderation of abortion-focused accounts was not related to the change in speech policies. But the timing of the incidents raised questions about whether the company was really loosening speech restrictions, and was another example of its challenges in content enforcement.

A Meta spokesman attributed some of the recent incidents involving abortion pill-related posts and accounts to rules that prohibit the sale of pharmaceutical drugs on its platforms without proper certification. The company also described some of the incidents as “over-enforcement.”

Meta, which has previously suppressed posts from abortion providers, has said that it was making changes to its speech policies partly to reduce the number of posts that were erroneously taken down.

“We’ve been quite clear in recent weeks that we want to allow more speech and reduce enforcement mistakes,” Meta said in a statement.

Lisa Femia, a staff attorney at the Electronic Frontier Foundation, said that since the Supreme Court overturned Roe v. Wade in 2022, “there’s been a massive uptick in social media platforms removing content related to reproductive health care and specifically abortion pills. This is an ongoing, increasing problem and a real threat to people receiving vital information and guidance about health care online.”

Aid Access, one of the largest abortion pill providers in the United States, said some posts were removed on its Facebook account and blurred out on its Instagram account since November, with more posts blurred in recent days. The abortion pill service said it has been blocked from accessing its Facebook account since November, and its Instagram account was suspended last week, though it has since been restored.

The Instagram accounts of other abortion pill providers, including Women Help Women and Just the Pill, were also suspended in recent days. The providers said the reason that Meta gave them for the suspensions was that their accounts did not “follow our Community Standards on guns, drugs and other restricted goods.” Both accounts were restored on Thursday.

The Instagram account of Hey Jane, another abortion pill provider, was recently invisible in Instagram search, said Rebecca Davis, who leads marketing at Hey Jane. Something similar happened in 2023 until Meta reversed it, she said.

“We know firsthand that this suppression actively prevents Hey Jane from reaching people who are seeking out timely health care information,” Ms. Davis said. “Given Meta’s recent promises around free speech, we’re incredibly disappointed to see how the platform is restricting our free speech.”

The Food and Drug Administration permits telehealth providers to prescribe online and deliver by mail the prescription drugs that cause an abortion, mifepristone and misoprostol. Twelve states have banned abortion and more have placed gestational limits or restrictions on mail-order pills. But providers in states where abortion is legal have been mailing pills to states with bans under shield laws meant to protect them.

Sheera Frenkel contributed reporting.

The post Instagram and Facebook Blocked and Hid Abortion Pill Providers’ Posts appeared first on Our Story Insight.

Welcome to The Best of Book Riot, our round-up of what’s on offer across our site, newsletters, podcasts, and social channels. Not everything is for everyone, but there is something for everyone. Here is what readers were most interested in the week that was.

Kiss Me, Wait: 5 of the Most Anticipated Romance Novels of 2025

From the blog posts and lists on Goodreads that I perused, I whittled it down to these five books that kept appearing. (Including one that is probably going to be the biggest book of next year.) Now you can mark them down on your list of upcoming books you want to read! (Everyone makes those, right?) As for me, my most anticipated romance of 2025 is Bed and Breakup by Book Riot’s very own Susie Dumond! Now, let’s take a peek at what the internet has to say.

Author Buy/Sell/Hold: 2024 Edition

On the most recent episode of the Book Riot podcast, Rebecca Schinksy and I take discuss twelve notable authors and try to decide if we would buy, sell, or hold stock in them. Where do we see their careers now? Are they at their peak? Past it? Or just getting cooking? Also, the Book Riot Podcast is now on Instagram. I have some ideas for it. Might actually do a few of them.

Must-Read New Horror, From Light Scares to Nightmare Fuel

Looking for some quick thrills and oh-so-satisfying chills? You’ve come to the right place. I’ve got 10 must-read new horror novels, ranging from light scares to nightmare fuel, waiting for you.

What Next?: Recent Post-Apocalyptic Fiction

Post-apocalyptic fiction takes many forms. These books include elements of dystopia, sci-fi, fantasy, mystery, literary fiction, and even comedy. (Because at the end of the world, what else can you do but laugh?) Whether it’s a close-to-home story set in the near future or a space opera set centuries from now, these stories envision a path for our world with varying levels of fear and hope. There’s a lot we can learn from imagining where human behavior — the good, the bad, and everything in between — might lead. May these books inspire you to take care of your neighbors, your community, our planet, and our collective future with a little more intention.

Book-to-Screen Adaptations You Might Have Missed This Year

2024 has been such an exciting year for adaptations. Wicked is a big one coming out next month that everyone is buzzing about. This year has also seen adaptations of favorites like Pachinko, Heartstopper, and many more. But with so many options in theaters and to stream at home, there are some fantastic adaptations that have flown under the radar. Here are three great book-to-screen adaptations that you might have missed. Best of all, they’re all available to stream now!

Feminist Magical Realism: 8 Recent Novels to Charm Your Bookshelves

If you want to read more about the genre, Emma Allmann’s essay “What is Magical Realism?” is a great place to start. But here, I’m interested in a specific phenomenon: feminist magical realist books. It’s an interesting trend, albeit not a new one, and it makes for some powerful reading.

The books on this list range from mostly realism with smatterings of magic to magic-infused realism that’s not a far cry from fantasy. Whatever you’re looking for, I hope you find it here!

What are you reading? Let us know in the comments!

The comments section is moderated according to our community guidelines. Please check them out so we can maintain a safe and supportive community of readers!

The post Book Riot’s Most Popular Posts of the Week appeared first on Our Story Insight.

The Austin, Texas, company said Wednesday that it made $2.17 billion from July through September, more than the $1.85 billion profit it posted in the same period of 2023.

The profit came despite price cuts and low-interest financing that helped boost sales of Tesla’s aging vehicle lineup. It was the company’s first year-over-year quarterly profit increase of 2024, a year plagued by falling sales and prices.

Tesla said it expects to achieve slight growth in vehicle deliveries this year. Getty Images

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

Shares in Tesla soared more than 9% in trading after Wednesday’s closing bell.

Earlier this month Tesla said it sold 462,890 vehicles from July through September, up 6.4% from a year ago. The sales numbers were better than analysts had expected.

Even with sales drops in the first two quarters, Tesla said in its letter to shareholders that it expects slight growth in vehicle deliveries for the full year despite “ongoing macroeconomic conditions,” mainly high interest rates. Last year the company sold 1.8 million EVs worldwide.

The letter said that Tesla is on track to start production of new vehicles, including more affordable models, in the first half of next year, something investors had been looking for. The new vehicles will use parts from its current models and will be made on the same assembly lines as Tesla’s current model lineup, the letter said.

Tesla slashed prices last year leading to a sharp decline in profit margins. CEO Elon Musk campaigning with Donald Trump earlier this month. Jasper Colt / USA TODAY NETWORK via Imagn Images

The new vehicles were not identified. CEO Elon Musk has said the company is working on a car that will cost about $25,000. Earlier this month, the company showed off a purpose-built two-seat robotaxi at a glitzy event at a Hollywood movie studio. Musk said it would be in production before 2027.

By using parts from existing models and the current manufacturing system, Tesla won’t reach cost reductions that it previously expected. But the company said this method should enable more than 50% growth over 2023 production.

Tesla said it reduced the cost of goods per vehicle to its lowest level yet, about $35,100. “Despite sustained macroeconomic headwinds and others pulling back on EV investments, we remain focused on expanding our vehicle and energy product lineup, reducing costs and making critical investments in (artificial intelligence) projects and production capacity,” the letter said.

Earlier this month, Tesla unveiled its robotaxi product, dubbed Cybercab. Tesla/AFP via Getty Images

The company’s widely watched gross profit margin, the percentage of revenue it gets to keep after expenses, rose to 19.8%, the highest in a year, but still smaller than the peak of 29.1% in the first quarter of 2022.

During the quarter, Tesla’s revenue from regulatory credits purchased by other automakers who can’t meet government emissions targets hit $739 million, the second highest quarter in company history.

The post Tesla shares jump as EV maker posts surprise profit of $2B appeared first on Our Story Insight.