Tesla Reports Third Quarter Financial Results Beating EPS Estimates but Missing Revenue Forecasts

TSLA.O

2024-10-243mins

Content

Tesla Reports Third Quarter Financial Results, Beating EPS Estimates but Missing Revenue Forecasts

Overview

Tesla Inc. (TSLA) has announced its financial results for the third quarter of 2024, highlighting significant earnings per share growth even as overall revenue fell short of consensus projections.

Key Financial Metrics

Metric	Q3 2024	Q3 2023	Q2 2024	YoY % Change	QoQ % Change	Consensus Estimate	Vs. Estimate
Revenue	$25.18 billion	$22.09 billion	$24.92 billion	+14.0%	+1.0%	$25.37 billion	Miss
Earnings Per Share (EPS)	$0.72	$0.66	$0.62	+9.1%	+16.1%	$0.58	Beat

Tesla's financial performance in the third quarter showed an increase in earnings per share, which surpassed Wall Street expectations despite revenue coming in slightly below forecasts. The increased earnings can be attributed largely to operational efficiencies and rising economies of scale, which have helped maintain strong margins amidst growing competition.

Revenue Breakdown by Segment

Segment	Q3 2024 Revenue	YoY % Change	Remarks
Automotive	$20 billion	+2.0%	Driven by volume growth but offset by lower ASPs
Energy Generation & Storage	N/A	N/A	Significant increase in storage deployment

Tesla continues to lead significantly in automotive revenue, supported by increased vehicle deliveries and expansion in energy storage, which grew impressively by 75% year-over-year. The automotive revenue increase reflects both growth in deliveries and expansions in full self-driving capabilities, though selling prices have moderated due to strategic pricing shifts.

Key Developments and Operational Highlights

Produced 7 millionth vehicle on Oct 22, 2024.
Cybertruck production hit a positive gross margin for the first time.
6.9 GWh of storage deployed, up 75% YoY, showcasing strength in the energy segment.

Comments from Tesla Officers

Tesla's leadership has emphasized their strategy of navigating between significant growth phases of existing and future vehicle models, particularly highlighting advances in autonomous technology and the scaling up of future production capabilities.

Forward Guidance

Tesla expects to maintain slight growth in vehicle deliveries throughout 2024, showing confidence in its ability to sustain momentum despite broader macroeconomic uncertainties.

Stock Price Movement

Following the report's release, Tesla stock rose by 8% to $230.50 in after-hours trading, reflecting positive investor sentiment toward the company's long-term strategic positioning and operational efficiencies, particularly in AI and lower-cost EV developments.

The report underscores Tesla's balanced focus on strengthening its core automotive business and expanding its ambitions within energy and autonomous technologies as they align for the future.

For more in-depth analysis and insights, stay tuned with our platform to stay ahead of the market.