Q3 2024 Shareholder Update → https://t.co/sXBSeLibSL
— Highlights
– Produced our 7 millionth vehicle at Fremont factory!
– Preparations for new vehicles remain underway (including more affordable models), which we'll begin launching in the first half of 2025
– Record gross… pic.twitter.com/is1UhqdH7r
— Tesla (@Tesla) October 23, 2024
Tesla reported mixed third-quarter results on Wednesday, but the stock surged as investors cheered the earnings beat, higher gross margins, and news that Tesla’s cheaper EV is on track for production next year. CEO Elon Musk also mentioned on an earnings call that Tesla’s volume growth could see a rise of 20-30% next year. For the quarter, Tesla reported revenue of $25.18 billion, which slightly missed Bloomberg’s consensus estimate of $25.4 billion.
Wild to think that Tesla’s mass flux is ~4 million tons of complex manufactured goods
— Elon Musk (@elonmusk) October 23, 2024
Tesla posted adjusted earnings per share of $0.72, beating the expected $0.60, on adjusted net income of $2.5 billion and free cash flow of $2.9 billion. The gross margin came in at 19.8%, much higher than the 16.8% expected. “We delivered strong results in Q3 with growth in vehicle deliveries both sequentially and year-on-year, resulting in record third-quarter volumes,” the company said in its earnings statement.
Look forward to discussing our initial reaction to Tesla’s key 3Q earnings and outlook on @CNBCOvertime at 4 pm with @MorganLBrennan @jonfortt ?????
— Dan Ives (@DivesTech) October 23, 2024
“Preparations remain underway for our offering of new vehicles — including more affordable models — which we will begin launching in the first half of 2025.”
Earlier this month, Tesla announced third-quarter deliveries that slightly missed expectations. The company said it delivered 462,890 vehicles in Q3, up 6.4% quarter over quarter, marking the first quarter of delivery growth this year. The numbers also surpassed the 435,059 EVs delivered in the same period last year.
Tesla’s promising production outlook
Yet, Wall Street had anticipated deliveries closer to 463,897. “Refreshed Model 3 ramp continued successfully in Q3 with higher total production and lower cost of goods sold quarter-over-quarter.
Cybertruck production increased sequentially and achieved a positive gross margin for the first time,” Tesla stated in its report. Elon Musk added during the conference call that 20-30% growth next year is possible, though he couched it as a “best guess.”
Ahead of Tesla’s Q3 disclosure, shares were down approximately 11% since Tesla revealed its robotaxi, dubbed the Cybercab, at its event on Oct. 10.
Investors and analysts sought more details from this event about the Cybercab and questions about the development of Tesla’s sub-$30,000 EV, referred to as the Model 2. On the conference call, Musk said the Cybercab would reach volume production in 2026, with the company aiming for 2 million Tesla Cybercabs per year. He also stated that the company remains on track for the production of new vehicles, likely including a cheaper EV, in the first half of next year.
Additionally, Tesla is testing robotaxi summoning and drives in the San Francisco area for employees, with safety drivers at the wheel. Tesla also reported that its Energy Generation and Storage business achieved a record gross margin of 30.5% in Q3 and expects the business to more than double year over year in 2024.
