Tesla (TSLA) Q3 2024 Earnings
How Did TSLA Stock React to Q3 2024 Earnings?
S&P 500 over the same 30 days: +3.16%.
Did TSLA Beat Earnings? Q3 2024 Results
Yes. Tesla reported Q3 2024 earnings of $0.72 a share on Oct 23, 2024, beating the $0.58 consensus estimate by 24.1%. Revenue was $25.2B against a $25.4B estimate.
Tesla delivered a standout third quarter, posting non-GAAP earnings per share of $0.72 against a consensus estimate of $0.58, a beat of 24.14%, even as revenue of $25.18 billion rose 7.8% year-over-year but came in just shy of the $25.37 billion analysts had expected. The headline profitability story was a sharp recovery in margins: GAAP operating income surged 54% year-over-year to $2.72 billion, producing a 10.8% operating margin, driven by aggressive cost discipline that pushed the cost of goods sold per vehicle to its lowest level yet and trimmed operating expenses 6% year-over-year to $2.28 billion. Free cash flow of $2.74 billion, up 223% year-over-year, underscored the improving financial engine beneath the surface. While rival automakers continue to absorb losses from their EV divisions, Tesla's energy segment added further lift, with revenue growing 52% year-over-year to $2.38 billion. Looking ahead, Tesla expects slight vehicle delivery growth for full-year 2024 and reaffirmed that more affordable new models remain on track for a first-half 2025 production start.
- Record third-quarter vehicle deliveries of 462,890 units (6% YoY growth)
- Lowest-ever COGS per vehicle at approximately $35,100
- Second-highest quarter of regulatory credit revenues ($739M)
- Energy business record gross margin of 30.5% (up 596 bps sequentially)
- Services and Other record gross profit, growing over 90% YoY
- Lower raw material costs, freight, duties and other cost reductions
- Higher FSD revenue recognition from Cybertruck and Actually Smart Summon
- Operating expenses decreased 6% YoY including cost-reduction efforts
- Cybertruck achieved positive gross margin for the first time
What Was Tesla's Outlook in Q3 2024?
Tesla expects slight growth in vehicle deliveries for full-year 2024 despite ongoing macroeconomic headwinds. Energy storage deployments are expected to more than double year-over-year in 2024. New vehicles, including more affordable models, remain on track for start of production in the first half of 2025, utilizing aspects of both the next-generation and current platforms on existing manufacturing lines. This approach yields less cost reduction than previously expected but enables more capital-efficient volume growth to fully utilize expected maximum capacity of close to three million vehicles (more than 50% growth over 2023 production) before investing in new manufacturing lines. The purpose-built Robotaxi will pursue a revolutionary 'unboxed' manufacturing strategy. The company expects hardware-related profits to be accompanied over time by an acceleration of AI, software and fleet-based profits.
TSLA YoY Financials
| Metric | Q3 2024 | Q3 2023 | Year over year |
|---|---|---|---|
| Revenue | $25.2B | $23.3B | +7.9% |
| Gross Profit | $5.0B | $4.2B | +19.6% |
| Operating Income | $2.7B | $1.8B | +54.0% |
| Net Income | $2.2B | $1.9B | +17.0% |
TSLA Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.