Tesla, Inc. (NASDAQ: TSLA) is an American electric vehicle and clean energy company based in Palo Alto, California. Founded in 2003 by Martin Eberhard and Marc Tarpenning, Tesla is led by CEO Elon Musk, who joined shortly after. Tesla specializes in electric vehicles, battery energy storage from home to grid scale, solar panels, and solar roof tiles.
The company’s mission is to accelerate the world’s transition to sustainable energy. Tesla’s product lineup includes the Model S, Model 3, Model X, Model Y, Cybertruck, and the Roadster, along with energy products like the Powerwall, Powerpack, and Megapack. Tesla continues to push the boundaries of technology and innovation, aiming to make renewable energy accessible and sustainable for all.
Following the release of Tesla’s Q3 earnings report, the company’s stock saw an 8% increase in after-hours trading. This positive movement was driven by Tesla exceeding profit margin estimates and strong performance across its product lineup, especially the Cybertruck. Investors responded favorably to Tesla’s ability to maintain profitability and growth despite challenging market conditions.
Tesla Fiscal Q3 2024
Tesla reported its third-quarter results, showing robust performance and financial health despite some challenges in revenue. The company continues to lead the electric vehicle market and make strides in renewable energy.
Tesla Third-Quarter Highlights:
- Revenue: Total Revenue increased by 8% year-over-year to $25.18 billion, below expectations.
- Earnings Per Share: EPS was $0.72, beating market expectations.
- Operating income was increased YoY to $2.7 billion, resulting in a 10.8% operating margin.
- Vehicle Deliveries: Tesla achieved record deliveries in Q3, with 462,890 vehicles delivered, including 439,975 Model 3/Y and 22,915 other models.
- Regulatory Credits Revenue: Tesla recognized $739 million in automotive regulatory credit revenue, which helped bolster profit margins.
- Energy Business: The energy generation and storage segment saw a 52% increase in revenue, reaching $2.38 billion.
- Higher FSD revenue recognition for Cybertruck and features like Actually Smart Summon. Also, Cybertruck became the third best-selling EV in the U.S. for Q3, behind Model Y and Model.
- Decrease in operating expenses including cost-reduction efforts.
- Increased AI training compute by over 75% in Q3, highlighting Tesla’s commitment to advancing its AI capabilities.
Outlook of 2024:
Tesla has provided guidance for Q4 2024, predicting a record-breaking quarter. Despite ongoing macroeconomic conditions, Tesla expects to achieve slight growth in vehicle deliveries for the year. Specifically, the company aims to deliver 515,000 vehicles in Q4 2024, which would represent a 6% increase year-over-year and an 11% increase quarter-over-quarter. This optimistic outlook has contributed to a positive market response.
Board Statements
Tesla CEO Elon Musk stated, “We delivered another record quarter in terms of revenue and profitability. Cybertruck’s success and our growing AI capabilities are testament to our continued innovation and leadership in the electric vehicle and renewable energy markets. Our strong financial performance allows us to invest in our future, maintain our growth trajectory, and continue our mission to accelerate the world’s transition to sustainable energy.”
Impact on the Stock Market
Following the release of Tesla’s Q3 earnings report, the company’s stock (TSLA) saw a 12% increase in after-hours trading. This positive movement was driven by Tesla exceeding profit margin estimates and strong performance across its product lineup, especially the Cybertruck. Investors responded favorably to Tesla’s ability to maintain profitability and growth despite challenging market conditions.
