Tesla Q3 Results Beat Estimates

Investing.com — Tesla reported its third-quarter results on Wednesday, surpassing Wall Street estimates due to enhanced margins. The company anticipates "slight" growth in deliveries as it aims to move past the 'EV winter'.

Stock Performance

Tesla Inc (NASDAQ:TSLA) saw an increase of over 8% in aftermarket trading.

Financial Highlights

For Q3, the company reported:
– Adjusted earnings per share: $0.72
– Revenue: $25.18 billion
Compared to Wall Street expectations of:
– Earnings per share: $0.60
– Revenue: $25.4 billion

The increase in bottom line was supported by a rise in automotive sales, which reached $20.02 billion, up from $19.63 billion a year prior, alongside stronger margins. Gross margins, excluding credits, increased to 17.05% from 14.7%

Energy Business Growth

Tesla’s energy division achieved a record gross margin of 30.5% in Q3, boosted by a surge in Powerwall deployments, despite lower Megapack sales. The company projects energy storage deployments to more than double year-over-year in 2024.

Additionally, the services and other units reported over a 90% growth in gross profit year-on-year in Q3.

Future Outlook

Moving forward, Tesla expects to see "slight" growth in vehicle deliveries in 2024. This positive delivery outlook comes after a challenging period marked by concerns about demand and competition in China, which pressured the company’s shares down 14% year-to-date.

Tesla is also progressing with preparations to launch new vehicle models and anticipates introducing more affordable options in the first half of 2025.