Quarterly Figures: Tesla Profit in Q3 2024 Higher Than Expected - Elon Musk With Optimistic Outlook - Shares in Turbo Mode

Austin, USA - Tesla, the US electric car manufacturer listed on the RENIXX World renewable share index, published its figures for the third quarter of 2024 (Q3 2024) yesterday after the close of trading. Although Tesla missed analysts' median expectations for revenue, it exceeded estimates for profit. The share goes into turbo.

After Tesla disappointed with the figures for production and deliveries in the third quarter and the presentation of the new Robotaxi failed to ignite, the balance sheet figures and statements on further development that have now been presented are much better received. Among other things, Tesla can benefit from a reduction in average vehicle costs to a record low.

Quarterly profit climbs by 17 percent compared to the same period last year

Overall, the US electric vehicle manufacturer generated revenue of 25.18 billion US dollars in the third quarter of 2024. Compared to the same quarter of the previous year, this represents an increase of 8% (Q3 2023: USD 23.35 billion). At USD 20 billion, the Automotive segment accounted for the largest share of sales (Q3 2023: USD 19.63 billion). Sales growth is also supported by the growing importance of the energy business, which increased by 52% year-on-year to USD 2.38 billion (Q3 23: USD 1.56 billion).

Net profit in Q3 24 was USD 2.17 billion according to GAAP accounting standards, which corresponds to an increase of 17% compared to the same quarter of the previous year (Q3 23: USD 1.85 billion). After the profit declines in Q1 2024 and Q2 2024, Tesla can thus reverse the trend. Tesla has also exceeded analysts' expectations. According to media reports, they had only expected growth of 14.9 percent. On a non-GAAP basis, profit in Q3 24 amounted to USD 2.51 billion, which corresponds to an increase of 8 percent compared to the same quarter of the previous year (Q3 23: USD 2.32 billion). The increase in profit is attributable to a significant reduction in the average cost per vehicle, which according to Tesla has reached its lowest level to date at USD 35,100.

On a GAAP basis, earnings per diluted share in Q3 24 amounted to USD 0.62, which corresponds to an increase of 17 percent compared to the same quarter of the previous year (Q3 23: USD 0.53). On a non-GAAP basis, earnings per share amounted to USD 0.72 (Q3 23: USD 0.66).

Tesla's Q3 deliveries fall just short of expectations

Tesla had already announced its production and delivery figures for the third quarter at the beginning of October. The Group produced a total of 469,796 vehicles in the third quarter. This means that production was 14.4 percent higher than in the previous quarter Q2 24 (410,831 vehicles) and achieved the best figure so far this year.

With 462,890 vehicles delivered in Q3 2024, Tesla was able to achieve an increase in deliveries of around 4 percent compared to the previous quarter, but just missed analysts' expectations. They had expected around 470,000 vehicles to be delivered in Q3. In order to reach the previous year's figure of around 1.81 million vehicles in full-year 2024, Tesla would now have to deliver around 515,000 vehicles in the remaining Q4 2024, which would be a new record.

Tesla shares up double digits

Following the publication of the Q3 figures, Tesla CEO Elon Musk provided additional optimism in the subsequent conference call with his forecast that Tesla could achieve growth in vehicles of 20 to 30 percent in the coming year 2025: the share ignited the turbo in yesterday's trading.

At the end of the day, Tesla shares ended the day up 21.1% at 239.90 (24.10.2024, Stuttgart Stock Exchange). Compared to the price at the turn of the year, the share price is up 4 percent.

Source: IWR Online, 25 Oct 2024