Tesla has announced that it expects to see a slight increase in vehicle deliveries in 2024 despite the current macroeconomic conditions. This news comes after the company delivered an earnings surprise in the third quarter, largely due to lower vehicle production and material costs.
In the third quarter, Tesla reported revenue of $25.18 billion, which was a 7.85 percent increase from the same quarter last year but a 1.25 percent decrease from the previous quarter. While this revenue figure fell slightly below analysts’ expectations of $25.43 billion, the company still managed to deliver impressive results.
The electric vehicle maker delivered a total of 462,890 vehicles worldwide in the third quarter, representing a 6.40 percent increase year-on-year and a 4.26 percent increase from the second quarter. In China alone, Tesla sold 181,883 vehicles, marking a 30.27 percent increase from last year and a 24.67 percent increase from the previous quarter.
Revenue from Tesla’s automotive business reached $20.02 billion in the third quarter, showing a 2 percent increase from the previous year but a 6.5 percent decrease from the second quarter. The company also saw revenue growth from its energy generation and storage business, which reached $2.38 billion, a 52.4 percent increase year-on-year.
Tesla reported a non-GAAP diluted earnings per share (EPS) of $0.72 in the third quarter, surpassing analysts’ expectations of $0.60. The company also achieved a gross profit of $5 billion, a 19.6 percent increase from the previous year and a 9.15 percent increase from the second quarter.
With a gross margin of 19.8 percent in the third quarter, Tesla exceeded analysts’ expectations of 16.8 percent. The company attributed this success to lower average costs per vehicle, including reduced raw material costs, freight, and duties. Despite lower average selling prices for vehicles, Tesla managed to maintain a strong gross margin.
Looking ahead, Tesla remains optimistic about its growth prospects, expecting to achieve slight growth in vehicle deliveries in 2024 despite challenging macroeconomic conditions. Additionally, the company reiterated its commitment to launching more affordable models in the first half of 2025.
Overall, Tesla’s strong performance in the third quarter demonstrates its resilience and ability to navigate through economic uncertainties while continuing to drive innovation in the electric vehicle industry.
