Tesla Defies Market Pressure with a $2.17B Q3 Profit; Stock Soars 12%
As a technology and automotive correspondent, I’m reporting on Tesla’s latest financial performance that has caught Wall Street by surprise.
Tesla delivered a powerful financial punch in the third quarter of 2024, posting a remarkable $2.17 billion profit—a 17.3% jump from last year. This comes at a time when many questioned the electric vehicle maker’s ability to maintain growth amid rising competition and pricing pressures.
Key Financial Highlights:
- Revenue: $25.18 billion (up 7.8% year-over-year)
- Earnings per share: 72 cents (beating analysts’ forecast of 59 cents)
- The stock performance saw a nearly 12% jump in after-hours trading.
- Regulatory credits: $739 million (second-highest quarterly revenue from credits)
Elon Musk, Tesla’s CEO, showed strong optimism during the earnings call, predicting 20–30% vehicle growth in 2025. This bold forecast comes despite ongoing challenges in the EV market and high interest rates that have dampened car sales industry-wide.
“No EV company is even profitable,” Musk pointed out during the call, highlighting Tesla’s unique position in the market. This statement underscores the company’s achievement in maintaining profitability while many competitors struggle.
The company’s performance marks a turning point in 2024, following slower growth in the first two quarters. Tesla managed to sell 462,890 vehicles from July through September, showing a 6.4% increase from the previous year—better than what market watchers expected.
Future Plans and Innovation
Tesla isn’t just riding on current success. The company revealed plans to start making new, more affordable vehicles in the first half of 2025. These new models will use parts from current vehicles and share assembly lines, though this approach might limit cost reduction potential.
A significant development is the Cybercab, Tesla’s purpose-built robotaxi unveiled earlier this month. Musk expects it to enter production before 2027, targeting a price point around $25,000.
Challenges and competitions
Despite the positive results, Tesla faces growing competition, especially in China, from companies like BYD and Geely. The company has used various discounts and incentives to boost sales while still maintaining healthy profit margins.
The EV maker’s profit margins tell an intriguing story. While lower than their peak of 29.1% in early 2022, they’ve rebounded to 19.8%—the highest in a year. Tesla achieved this while reducing the cost per vehicle to its lowest level yet, approximately $35,100.
Looking Ahead
Tesla’s future seems focused on autonomous driving technology. Musk claimed their “Full Self-Driving” system would surpass human safety levels by mid-2025, though this comes amid a new safety investigation by U.S. regulators.
The company is already testing an autonomous ride-hailing service with employees in the San Francisco Bay Area and plans to launch public robotaxi services in California and Texas next year.
As Tesla continues to push boundaries in both manufacturing efficiency and autonomous technology, the company appears well-positioned for future growth, despite market skepticism and increasing competition in the EV sector.
The strong earnings report suggests Tesla remains a dominant force in the electric vehicle market, successfully balancing innovation with profitability in an increasingly competitive landscape.
Table of Contents