Tesla reported a strong third-quarter profit that exceeded Wall Street’s expectations, leading to a surge in its stock price. The earnings report indicated that Tesla’s earnings per share were 72 cents, higher than the anticipated 58 cents. Revenue stood at $25.18 billion, slightly below the $25.37 billion forecasted.
The increase in revenue was mainly attributed to a rise in automotive regulatory credit revenue, which bolstered profit margins by $739 million during the quarter. Tesla’s automotive revenue saw a 2% increase to $20 billion, while energy generation and storage revenue soared by 52% to $2.38 billion. Services and other revenue, including non-warranty repairs, also saw a significant jump.
CEO Elon Musk expressed optimism about the company’s growth in the coming year, projecting a 20% to 30% increase in vehicle growth. He highlighted the importance of lower-cost vehicles and advancements in autonomy as key drivers for this growth. Musk also mentioned that Tesla is currently producing autonomous vehicles at a rate of 35,000 per week.
One of the notable developments discussed was Tesla’s plan to produce 2 million Cybercabs annually and introduce driverless ride-hailing services in Texas and California by 2025. Musk emphasized that all future Tesla vehicles would be autonomous, with the majority of existing vehicles capable of autonomy.
Despite facing competition in the electric vehicle market, Tesla’s Cybertruck became the third best-selling electric vehicle in the U.S., behind only the Model 3 and Model Y. Although the Cybertruck has faced quality issues, it registered positive gross margins for the first time.
Tesla’s Full Self-Driving Supervised system contributed $326 million in revenue, following the integration of new features in the Cybertruck. The company reported vehicle deliveries of 462,890 and production of 469,796 electric vehicles in the third quarter. While deliveries increased by 6% year-over-year, they fell short of analyst expectations due to ongoing challenges.
Looking ahead, Tesla aims to achieve slight growth in vehicle deliveries in 2024 and plans to introduce more affordable models by the first half of 2025. The company is navigating increased competition, especially in China, from other electric vehicle manufacturers. Legacy automakers in the U.S. are also ramping up their electric vehicle offerings, posing a new challenge for Tesla.
The earnings report follows a robotaxi event and comes ahead of the presidential election, where Elon Musk’s political activities have garnered attention. Despite recent stock fluctuations, Tesla remains focused on innovation and growth in the electric vehicle market.
