Tesla (TSLA) reported mixed third-quarter results after the bell on Wednesday, but capitalized on higher profits, improved gross margins, and news that Tesla’s low-cost EV is scheduled for production next year. The house rejoiced, and stock prices soared in after-hours trading. CEO Elon Musk also added in an earnings call that Tesla’s sales growth could be 20% to 30% next year.
For the quarter, Tesla reported revenue of $25.18 billion, compared to $25.4 billion according to the Bloomberg consensus. This was higher than the $25.05 billion reported in the second quarter and also higher than the $23.4 billion Tesla reported a year ago. Tesla posted adjusted EPS of $0.72 versus expectations of $0.60, adjusted net income of $2.5 billion, and free cash flow of $2.9 billion.
The gross profit margin, which was attracting attention, was 19.8%, which was much higher than the expected 16.8%.
Tesla shares rose nearly 11% in after-hours trading.
“The company delivered strong results in the third quarter, increasing vehicle deliveries quarter-over-quarter and year-over-year, resulting in record third-quarter sales,” the company said in its earnings filing. It became,” he said. “Preparations for new vehicle offerings, including more affordable models, continue to be underway and are expected to start rolling out in the first half of 2025.”
Earlier this month, Tesla announced that third-quarter deliveries were slightly lower than expected, sending its stock price down.
Tesla said it delivered 462,890 vehicles in the third quarter, an increase of 6.4% from the previous quarter and the first quarterly increase in deliveries this year. This number exceeded the 435,059 EVs the company delivered in the same period last year. However, Wall Street expected Tesla’s deliveries to be closer to 463,897 vehicles, according to Bloomberg.
Tesla said in its report, “Production increases for the new Model 3 continued steadily in the third quarter, with total production increasing quarter-on-quarter and cost of goods sold falling.Cybertruck production increased quarter-on-quarter, marking the first time We achieved positive gross profit.”
Tesla said it expects vehicle deliveries to reach “modest increases” in 2024. CEO Elon Musk said on a conference call that a 20% to 30% increase is possible next year, but insisted that was a “best guess.”
Ahead of Tesla’s third-quarter disclosure, Tesla unveils a robot taxi called CyberCab at a glitzy “We, Robot” event at the Warner Bros. studio grounds in Burbank, Calif., on Oct. 10. Since then, the stock price has fallen about 11%.
Many analysts and industry watchers believe that the debut and launch of cheaper EVs will spur the next step in EV sales, as CEO Elon Musk has also said previously. That’s true. Tesla and Musk said in their second-quarter reports that the company is on track to produce new vehicles, possibly including cheaper electric vehicles, in the first half of next year.
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Tesla CyberCab Robotaxi (Tesla) · Tesla
Investors and analysts at Tesla’s “We, Robot” event were hoping to learn more details about the CyberCab itself, a detailed test plan, and more information about the development of Tesla’s sub-$30,000 EV, called the Model 2. I also asked for questions.
“Overall, we found Tesla’s robotaxi event underwhelming and surprisingly lacking in detail,” Bernstein analyst Toni Sacconaghi wrote the day after the event. “While Mr. Musk has articulated his vision for a self-sustaining world, it offers little beyond what he has repeatedly expressed over the past few years.”
Tesla reported that its energy generation and storage business delivered a record gross margin of 30.5% in the third quarter, and that it expects the business to more than double year-over-year growth in 2024.
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Pras Subramanian is a reporter for Yahoo Finance. you can follow him × And also on Instagram.
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