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Highlights:
- Tesla's Q3 EPS increased 9% year-over-year to $0.72, beating estimates of $0.58.
- Profit margin rose to 19.8%, outperforming expectations of 17.2%.
- Tesla reported Q3 vehicle deliveries of 462,890, marking a 6% year-over-year growth.
Tesla Inc. (NASDAQ:TSLA) saw its stock surge in after-hours trading on Wednesday following the release of its third-quarter earnings, which exceeded market expectations on both profit and margins, despite a slight miss on revenue. The electric vehicle (EV) maker's earnings per share (EPS) rose 9% year-over-year to $0.72, surpassing analysts' expectations of $0.58.
Tesla’s revenue for the quarter totaled $25.18 billion, an 8% increase from the same period last year, though it fell short of the $25.57 billion estimate. The company’s automotive revenue saw modest growth, rising 2% to $20 billion. Meanwhile, energy generation and storage revenue surged 52% to $2.38 billion, and services and other revenue climbed 29% to $2.79 billion.
One of the quarter’s standout achievements was Tesla’s improved profit margin, a key metric for the company after multiple price cuts in recent quarters to boost demand. The profit margin rose to 19.8%, compared to 17.9% in Q3 2023 and 18% in Q2 2024. Analysts had expected a margin of 17.2%, making this result a significant beat.
Tesla's operational highlights included the strong performance of its Cybertruck, which became the third best-selling EV in the US, trailing only the Model Y and Model 3. The company also noted that more than 2 billion miles have been driven using its Full Self Driving (FSD) technology under supervision, underscoring its progress in autonomous driving.
In terms of vehicle deliveries, Tesla reported 462,890 deliveries for the third quarter, a 6% increase year-over-year and marking the first quarter of delivery growth in 2024. This delivery performance contributed to the company’s record third-quarter volume.
Tesla’s shareholder update reflected the company’s confidence, despite challenges in the broader economy. “We delivered strong results in Q3 with growth in vehicle deliveries both sequentially and year-on-year, resulting in record third-quarter volumes,” the company stated. Tesla also emphasized its continued focus on expanding its product lineup, reducing costs, and investing in artificial intelligence (AI) projects and production capacity.
Tesla acknowledged the sustained macroeconomic headwinds that have impacted the automotive industry, but reiterated its commitment to pushing forward with its EV and energy product investments. The company also highlighted its efforts to maintain leadership in AI, particularly in the development of autonomous driving technology.
Following the release of its earnings report, Tesla shares jumped 7.3%, reaching $229.30 in after-hours trading.
