After hours on Wednesday (October 23) Eastern Time, Tesla released its third quarter 2024 financial report. Although the company's revenue was slightly lower than market expectations, its profits exceeded Wall Street's expectations. Boosted by excellent financial reports, Tesla surged over 12% after trading.
On the 23rd, Tesla's opening price was $217.07. As of the close of the US stock market, Tesla's stock price fell $4.32 to close at $213.65, a decrease of 1.98%. As of press time, Tesla's stock price rose $25.85 to $239.5 in after hours trading, a 12.1% increase.
Before the stock price rose after Wednesday's trading session, Tesla's stock had already fallen by 18% in October, and was about to face its worst month since January. Since the beginning of this year, Tesla's stock price has fallen by 14%, while the Nasdaq index has risen by 22% during the same period.
Tesla's Q3 profit exceeds expectations
On October 24th, Tesla released its financial report showing that in the third quarter of 2024, Tesla achieved revenue of $25.182 billion, a year-on-year increase of 8%, slightly lower than market expectations; GAAP net profit was $2.167 billion, a year-on-year increase of 17%, far exceeding market expectations; The gross profit margin increased to 19.8%, a year-on-year increase of about 2 percentage points.
Source: Tesla's official website
The increase in delivery volume has boosted its performance. Tesla's delivery volume in the third quarter was 463000 units, a year-on-year increase of 6.4%, marking a year-on-year growth in sales for the first quarter of this year and setting a record for delivery in the third quarter of previous years.
In response to the increase in net profit, Tesla mentioned that its cost of bike sales (COGS) has dropped to its lowest level ever, at approximately $35100.
In addition, Tesla's carbon credits revenue for this quarter was the second highest in history, at $739 million, which also helped it increase its profit margin. Tesla stated that this is because other manufacturers are still lagging behind in meeting emission requirements. Automakers must earn a certain amount of carbon credits each year, and if they cannot meet the target, they can purchase credits from companies such as Tesla, which has surplus credits because it only produces electric vehicles.
In terms of energy business, Tesla once again achieved strong performance this quarter, achieving revenue of $2.376 billion and a record high gross profit margin of 30.5%. The Shanghai Gigafactory is still scheduled to start delivering Megapacks in the first quarter of 2025.
Elon Musk: Pushing low-priced car models in the first half of the year, Tesla sales are expected to increase by 20-30% next year
Tesla has revealed that the company is preparing to launch more competitive models, including more affordable models (known as the low-priced Model 2 by investors) starting in the first half of 2025.
During the earnings call, Tesla CEO Elon Musk pointed out that with incentives, the price of electric vehicles will be "below $30000, which is a key threshold"; Tesla will not produce cheap cars lacking autonomous versions; A conventional $25000 electric car would be 'meaningless'.
Musk also stated that Tesla's car sales could grow by 20% -30% in the best case scenario next year, thanks to the reduction in car costs and the emergence of autonomous driving.
Musk expects that the autonomous taxi Cybercab will achieve mass production by 2026, with a goal of producing at least 2 million units annually; The company will launch ride hailing services (shared mobility services) in Texas and California in 2025 and is awaiting regulatory approval.
Musk: Annual production of 2 million autonomous taxis FSD V13 to be launched soon
Musk also discussed the progress of the fully autonomous driving feature FSD, including the release of V12.5 version and the FSD of Cybertruck. He pointed out that the FSD V13 is expected to be launched soon, and the mileage of each intervention of V13 is expected to increase by 5-6 times.
After the launch of the FSD V12 version, Tesla's FSD usage increased significantly, which also drove its revenue and net profit to climb.
As of the third quarter, the FSD fully autonomous driving capability (Driver Supervision Edition) has accumulated over 2 billion miles of driving, with over 50% of this achieved on the V12 version.
Musk pointed out that Tesla internally estimates that FSD will be safer than human drivers by the second quarter of next year, "without waiting for Robotaxi to achieve fully autonomous driving. We expect to be able to achieve this goal with existing models next year
About two weeks ago, Tesla launched RobotaxiCybercab. Musk stated that he is confident that Cybercab will achieve mass production by 2026. Tesla estimates an annual production of 2 million vehicles.
He also expects that California and Texas will offer shared mobility services to the public next year. He also revealed that Tesla employees in the San Francisco Bay Area now have an autonomous ride hailing service, but this service still uses safety personnel.
Musk emphasized that Cybercab is technically a car worth $25000. As for the non Robotaxi car priced at $25000, executives emphasized that Tesla is fully committed to the field of autonomous driving, so there are currently no plans to produce a non autonomous version of Cybercab.
Musk: We have the most advanced humanoid robots on the market
In addition, Tesla stated that its artificial intelligence training computing power increased by over 75% in the third quarter.
Musk pointed out that the Optimus humanoid robot project is making progress. He mentioned that Optimus' next generation hand has 22 degrees of freedom.
Musk said, "I am confident that we have the most advanced humanoid robots and are far ahead of other similar robots." He also added that competitors' robots lack artificial intelligence capabilities and even do not have the ability to mass produce robots, while Tesla has both capabilities, so the company's leading potential in this field is very significant.
I think Optimus will become the most valuable part of Tesla, "Musk added.
Tesla stated that despite global economic growth being hindered and other companies reducing their investments in the electric vehicle business, we remain focused on expanding our vehicle and energy lines, reducing costs, and investing heavily in artificial intelligence projects and production capacity. We believe that these efforts will enable us to seize the transformation opportunities currently underway in the transportation and energy sectors.
Disclaimer: The content and data in this article are for reference only and do not constitute investment advice. Please verify before use. Based on this operation, the risk is borne by oneself.
Comprehensive self finance association, The Paper News, Daily Economic News, Global Times, etc