Tesla is set to announce its third quarter 2024 earnings this afternoon, and all eyes are on how the automaker performed financially after posting a 6% quarterly increase in deliveries in a challenging market.
Wall Street analysts project Tesla’s revenue for Q3 2024 to reach $25.46 billion, representing a 9% year-over-year increase. This increase is fueled by the company’s steady vehicle deliveries, particularly in China, where Tesla has managed to maintain a solid market presence. Tesla reported 462,890 vehicle deliveries in Q3, a 6.4% increase from the previous quarter, nearly matching exactly analyst expectations of 463,000.
Profitability remains a critical focus. Analysts expect earnings per share (EPS) to come in at $0.60, reflecting a 9% decline compared to Q3 2023. The dip in profits is attributed to Tesla’s aggressive pricing strategy and subsidized incentives like low interest rates, which have compressed its traditionally strong automotive gross margins.
In Q2 2024, Tesla’s automotive gross margin stood at 14.6%, and analysts expect only a slight improvement to 14.7% in Q3, according to data analyzed by FactSet.
One expected bright spot is the company’s Energy division, which is becoming a significant contributor to revenue. While not a quarterly record, Tesla deployed 6.9 GWh of energy storage in Q3, adding to its revenue diversification beyond automotive sales.
Tesla will also answer questions from investors that have been submitted through the Say platform. Here are the top voted questions that will be asked during this afternoon’s call.
- Is Tesla still on track to deliver the more affordable model next year, as mentioned by Elon earlier, and how does it align with your AI and product roadmap?”
- When can we expect Tesla to give us the ~$25K, non-robotaxi, regular car model?
- Please provide an update on the Semi. What will the next stage of growth look like and when will FSD be ready?
- What is Tesla doing to alleviate long waiting times on service centers ?
- When will Tesla incorporate X and Grok in all of the Tesla Vehicles?
- Elon mentioned unsupervised FSD in California and Texas next year. Does that mean regulators have agreed to it in the entire state for existing HW3/HW4 vehicles?
- What’s going on with the Tesla Roadster?
- What’s the plan for 2025?
What: Tesla Q3 2024 Financial Results and Q&A Webcast
When: Wednesday, October 23, 2024
Time: 4:30 p.m. Central Time / 5:30 p.m. Eastern Time
Q3 2024 Update: https://ir.tesla.com
Webcast: https://ir.tesla.com (live and replay)
