Tesla Q3 2024 Earnings Results

Tesla posted its Q3 2024 earnings report on Wednesday, following its robotaxi-unveiling event, which left investors and analysts with numerous questions.

The company reported an adjusted earnings per share (EPS) of $0.72, which beat expectations of $0.60. While its revenue was $25.18 billion, slightly below the forecast of $25.43 billion, the overall performance remains impressive.

Tesla’s operating income was much higher than expected at $2.72 billion, compared to an estimated $1.96 billion. The gross margin also came in strong at 19.8%, surpassing the estimated 16.8%. The company posted an operating cash flow of $6.3 billion and a free cash flow (FCF) of $2.7 billion for the quarter. Notably, Tesla saw a $2.9 billion increase in cash and investments, bringing the total to a record $33.6 billion.

Looking at the cost of goods sold (COGS), Tesla is already an efficient automaker but continues to optimize its operations. In Q3, the COGS per vehicle dropped to approximately $35,100, the lowest level ever for the company.

Tesla expects slight growth in vehicle deliveries for 2024, reflecting confidence in future sales. After the earnings report, the company’s stock price increased during after-hours trading, signaling a positive reaction from investors despite the slight revenue miss.

Furthermore, Tesla mentioned that plans for new vehicles are on track. Notably, the Cybertruck has reached profitability and was recognized as the third best-selling electric vehicle in the U.S. for Q3.

Overall, Tesla’s Q3 results reflect a strong quarter with solid financial performance, record cash reserves, and promising plans for the future.