Tesla Q3 Profits Beat Estimates, More Affordable Model by 2025

Tesla reported an 8% year-over-year increase in adjusted net profit for the third quarter, reaching $2.5 billion, which exceeded the expected $2.1 billion, primarily driven by a slight 2% increase in vehicle sales revenue (accounting for four-fifths of the group's revenue).

Tesla's revenue for the third quarter grew by 8% to $25.2 billion, slightly below the average expected $25.4 billion. Additionally, its energy generation and storage business grew by 52%, and the service department grew by 29%, including the Supercharging network.

Tesla expects a slight increase in vehicle deliveries in 2024, with the new car plan, including more affordable models, continuing to move towards its target,有望 to start production in the first half of 2025.

In terms of gross margin, it was reported that Tesla's gross margin rose from 17.9% in the same period of 2023 to 19.8%. Tesla stated that the production of the Cybertruck reported a positive gross margin for the first time, a milestone after years of delayed production and recalls, and it is currently the third best-selling electric vehicle in the United States, following its Model Y and Model 3. Tesla added that the "Semi" electric truck factory will start production before the end of 2025.

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According to CNN, Tesla stated that the average manufacturing cost per vehicle has dropped to a historical low of $35,100, a decrease of about $2,400 from the same period last year, a 6% decrease.

CNN also mentioned that Tesla's sales revenue from solar cells, batteries, and other energy products increased by 93%, growing by $1.5 billion compared to the same period last year.

Tesla's quarterly profit exceeded analyst expectations and predicted a "slight increase" in deliveries for this year, marking a turnaround for Tesla. Amid concerns about a slowdown in global demand for electric vehicles, Tesla has experienced several disappointing quarters. The company's stock price has almost halved since its peak in November 2021.

Earlier in October, Tesla reported a 6.4% increase in global deliveries for the third quarter, reaching 462,890 vehicles.

The Financial Times reported that Musk has shifted his strategic focus to autonomous driving, artificial intelligence, and robotics. He told investors that these technologies will soon become Tesla's main source of revenue and drive up its valuation. Musk recently unveiled a prototype of a new autonomous taxi, hoping to start production before 2027.