The company predicted a modest increase in vehicle deliveries for the year, aiming to exceed the 1.8 million vehicles delivered in 2023. Additionally, it comfortably exceeded third-quarter profit forecasts, although its revenue fell slightly short of expectations.
Tesla Chief Executive Elon Musk anticipates a significant boost in vehicle sales ranging from 20% to 30% next year. This growth is expected to be supported by advancements in autonomous technology and the introduction of more affordable models. Following these announcements, Tesla shares experienced a 12% increase in post-market trading on Wednesday.
The company projected a “slight growth” in auto deliveries for the year, aiming to surpass the 1.8 million vehicles delivered in 2023. It also exceeded third-quarter profit expectations, although its revenue fell slightly short of forecasts.
The company’s quarterly report alleviated concerns on Wall Street regarding Tesla’s efficiency in its core business of manufacturing and selling electric vehicles, reducing anxieties about the timeline for producing new models, including a robotaxi. This reassurance led to a 12% stock surge during the post-earnings conference call, adding about USD 80 billion in market value, although the stock had fallen 2% during regular trading on Wednesday.
Tesla remains committed to expanding its vehicle lineup, reducing costs, and making significant investments in AI and production capacities despite uncertain demand and competitors scaling back on EV investments. The company announced preparations for launching new, more affordable vehicle models by the first half of 2025.
Despite a high-interest robotaxi event earlier in the month that left investors craving more details, Musk reported a substantial increase in the adoption of Tesla’s supervised Full Self-Driving autopilot software following the event. Additionally, the company reintroduced a month-long free trial of FSD to past customers.
Analysts believe Tesla may have reached a profitable balance in its pricing and production costs. The third-quarter adjusted profit per share was 72 cents, surpassing the average estimate of 58 cents. The company also reported its lowest ever cost of goods sold per vehicle at about USD 35,100.
Tesla’s profit margin from vehicle sales, excluding regulatory credits, increased this quarter, and its delivery figures for the year already suggest a potential new annual record. Moreover, despite employing significant price cuts and financial incentives to maintain sales volumes, the company has managed to sustain its profit margins better than expected, countering initial fears that such strategies might severely impact profitability.
Revenue for the July-September quarter stood at USD 25.18 billion, slightly below the expected USD 25.37 billion, yet showing an improvement from the same quarter last year.
