Tesla reported third-quarter earnings that exceeded analysts’ estimates, with revenue slightly below expectations. The company’s stock rose 10.7% in premarket trading following the announcement. Revenue increased by 8%, with net income rising to $2.17 billion from $1.85 billion the previous year. This was supported by $739 million in automotive regulatory credit revenue.
CEO Elon Musk stated that he expects vehicle growth to be between 20% and 30% next year due to lower-cost vehicles and advancements in autonomy. Tesla continues to focus on autonomous vehicles, with all future cars being designed to be autonomous. The company is working on producing 2 million Cybercabs annually and aims to offer driverless ride-hailing services as early as 2025.
The Cybertruck became the third-best-selling fully electric vehicle in the U.S., behind the Model 3 and Model Y, achieving a positive gross margin for the first time. Tesla CFO Vaibhav Taneja mentioned that the Full Self-Driving Supervised system contributed $326 million in revenue during the quarter.
Despite facing increased competition, particularly in China, Tesla remains committed to launching more affordable models in the first half of 2025 and expects slight growth in vehicle deliveries by 2024. The company reported vehicle deliveries of 462,890 in the third quarter, falling short of analyst expectations.
The earnings report followed a robotaxi event that left shareholders eager for more details and occurred ahead of the presidential election. Musk’s pro-Trump activism was a topic of interest among shareholders, although no related questions were asked during the call. Tesla’s stock had been down 18% in October prior to the earnings announcement.
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