Tesla Reports That Its Q3 Earnings Exceeded Expectations, Is This A Comeback?
Despite Tesla holding on to a lot of stock, the brand managed a positive profit this quarter
Tesla Inc. reported impressive third-quarter results on Wednesday, surpassing Wall Street expectations thanks to improved profit margins. The electric vehicle (EV) manufacturer is optimistic about achieving “slight” growth in deliveries this year as it aims to move beyond the challenges of the so-called “EV winter.”
Following the announcement, Tesla’s stock surged more than 8 percent in aftermarket trading, reflecting positive investor sentiment. For the third quarter, Tesla reported adjusted earnings per share of USD0.72 on revenue of USD25.18 billion, beating analyst estimates of USD0.60 per share and USD25.4 billion in revenue.
Moreover, the company’s strong performance was primarily driven by a significant increase in automotive sales, which rose to USD20.02 billion from USD19.63 billion in the same period last year. This growth was complemented by enhanced gross margins, which climbed to 17.05 percent in Q3 from 14.7 percent in the previous quarter, excluding regulatory credits.
Tesla’s energy division also contributed to the positive results, achieving a record gross margin of 30.5 percent in Q3. This success was largely attributed to robust deployments of the Powerwall, Tesla’s home energy storage solution, which offset a decline in Megapack sales. The company expressed confidence in its energy business, projecting that energy storage deployments will more than double year-over-year in 2024.
Tesla’s services and other segments also saw a remarkable gross profit increase of over 90 percent year-on-year, indicating strong performance across its diversified offerings. Looking ahead, Tesla is cautiously optimistic about its delivery outlook for 2024.
On top of that, this more positive perspective comes after a challenging period marked by concerns about demand and competition, particularly in the Chinese market, which has pressured the company’s stock, leading to a 14 percent decline year-to-date.
Tesla reaffirmed that it is making steady progress in preparations to launch new vehicles. The company continues to expect the rollout of more affordable models in the first half of 2025, a strategic move aimed at capturing a broader segment of the EV market.
As Tesla navigates the complexities of the EV landscape, its recent results and forward-looking statements suggest a commitment to growth and innovation, positioning the company to overcome past hurdles and capitalise on future opportunities in the evolving EV sector.
We got all this from MSN and their full article is linked here. Thank you MSN for the information and images.
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