In a significant earnings reveal, Tesla exceeded Wall Street’s expectations in the third quarter with an adjusted earnings per share of 72 cents against the anticipated 58 cents. Despite this, revenue slightly missed forecasts, coming in at $25.18 billion compared to the expected $25.37 billion. Tesla shares surged 12% in after-hours trading. The company reported an 8% revenue increase year-over-year, driven in part by $739 million from automotive regulatory credits. Automotive revenue rose 2% to $20 billion, while energy generation and storage soared by 52%, and services-related income grew 29%.
Elon Musk, Tesla’s CEO, projected 20% to 30% vehicle growth in 2025, citing lower-cost vehicles and advancements in autonomy. Despite announcing plans for autonomous-only cars, Tesla’s vehicles still require human oversight. Musk also mentioned a future goal to produce 2 million Cybercabs annually for a driverless ride-hailing service slated for testing in Texas and California by 2025.
The Cybertruck ranked as the third best-selling electric vehicle in the U.S., with 16,000 units sold, despite quality challenges. Tesla CFO Vaibhav Taneja noted that the Full Self-Driving option added $326 million in revenue during the quarter.
Vehicle deliveries for the quarter reached 462,890, a 6% increase from last year but falling short of expectations. Tesla is contending with growing competition from both domestic and international automakers. While the company aims for modest delivery growth in 2024, it plans to introduce more affordable models by 2025.
The company’s stock, already having declined 14% this year, received a boost after the earnings report despite concerns over Musk’s political activities and their potential influence on Tesla’s market performance.
Original Story https://www.cnbc.com/2024/10/23/tesla-tsla-q3-2024-earnings-report.html
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