Tesla’s Q3 profits beat expectations again

Q3 Profits
Q3 Profits

Tesla reported better-than-expected profits in its third-quarter earnings report for 2024. Revenue increased by 8% from $23.35 billion a year earlier.

Net income rose to about $2.17 billion, or 62 cents a share, from $1.85 billion, or 53 cents a share, a year ago.

Automotive revenue increased by 2% to $20 billion from $19.63 billion in the same period a year earlier.

Energy generation and storage revenue soared by 52% to $2.38 billion, while services and other revenue jumped 29% to $2.79 billion. During the earnings call, Elon Musk stated his “best guess” that “vehicle growth” will reach 20% to 30% next year, driven by “lower cost vehicles” and the “advent of autonomy.” Musk predicted that Tesla would eventually produce 2 million Cybertrucks a year and offer driverless ride-hailing services as early as 2025 in Texas and likely California.

In a shareholder update, Tesla noted that the Cybertruck had become the third-best-selling fully electric vehicle in the U.S., after the Model 3 and Model Y. Tesla reported that the Cybertruck “achieved a positive gross margin for the first time.”

Tesla CFO Vaibhav Taneja said that the Full Self-Driving (FSD) system contributed $326 million in revenue in the quarter after FSD was made available for the Cybertruck and included a feature called “Actually Smart Summon.”

Earlier this month, Tesla reported third-quarter vehicle deliveries of 462,890, with the company producing 469,796 electric vehicles in the period ending September 30.

Tesla’s Q3 financial highlights

While deliveries increased by 6% from a year earlier, they fell short of analysts’ expectations. Despite the ongoing macroeconomic conditions, Tesla expects to achieve slight growth in vehicle deliveries in 2024. The company reiterated its goal of launching more affordable models in the first half of 2025.

Tesla faces increased competition, especially in China from companies like BYD and Geely, and new automakers such as Li Auto and Nio. In the U.S., legacy automakers are also starting to sell more electric vehicles. Prior to Wednesday’s after-hours pop, Tesla stock was down 18% in October and was headed for its worst month since January.

For the year, the shares were down 14%, while the Nasdaq was up 22% over that stretch. Overall, Tesla’s Q3 2024 earnings report showcased robust profitability and offered optimistic forecasts for future growth, particularly in the autonomous vehicle sector.

Harper Johnson

Harper Johnson stands at the forefront of digital marketing, where she dissects and interprets the impact of online advertising trends, social media dynamics, and search engine algorithms on consumer behavior.

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