Key Takeaways
- With a 17% profit gain, Tesla reveals impressive Q3 2024 statistics.
- Following the earnings release, Tesla’s shares increased by 12% as revenue increased by 8% to $25.2 billion.
- Tesla will now concentrate on more affordable iterations of its current models rather than aiming for a $25,000 EV.
Tesla reported positive Q3 numbers on Wednesday, beating Wall Street’s forecasts and bounced back from two quarters in which profits fell.
In Q3 2024, the electric vehicle maker made $2.2 billion in net income, a 17% rise over the same period the previous year, according to the earnings release [PDF]. Higher car deliveries, more sales of regulatory credits, and strong results in Tesla’s energy segment all contributed to this gain.
Stronger worldwide deliveries helped the July–September quarter’s revenue increase by 8% to $25.2 billion.
The second-highest revenue for this category in Tesla’s history was largely due to regulatory credit sales, which the company extends to other automakers.
After-hours trading saw a 12% increase in Tesla’s stock following the results report. Elon Musk, the CEO, indicated that car sales would rise by 20% to 30% in 2025, although he did not specify a sales goal for this year.
Tesla Will Give Up on Low-Cost EVs
With Musk announcing that the business will no longer seek a $25,000 electric vehicle, Tesla’s future product strategy has also changed. Rather, it intends to introduce more reasonably priced iterations of its current models, which should be accessible by early 2025 and cost under $30,000.
Tesla’s record 30.5% profit margin in the energy sector helped offset the company’s decreasing automobile prices.
Despite early apprehensions after the recent reveal of Tesla’s robotaxi and other autonomous vehicles at the “We, Robot” event earlier this month, this strong Q3 projection has been released.
Musk unveiled the Cybercab, a completely driverless car with no conventional controls, and a new Robovan at the event to increase Tesla’s self-driving capabilities.
While these developments created enthusiasm, they also caused some investors to voice doubt about Tesla’s ambitious plans for complete autonomy.
It looks like the EV manufacturer is set to close out 2024 on a high note, even though stock prices fell after the event.
