Tesla’s (NASDAQ:TSLA) Q3 2024 earnings name comes on the heels of the corporate’s Q3 2024 Replace Letter, which was launched after the closing bell on Wednesday, October 23, 2024.
Tesla posted whole revenues of $25.18 billion, with automotive revenues of $20.02 billion in Q3 2024. The corporate additionally posted non-GAAP earnings per share of $0.72 and GAAP EPS of $0.62. Tesla posted $2.7 billion GAAP working revenue within the third quarter, and a file $33.6 billion in money.
The next are stay updates from Tesla’s Q3 2024 earnings name. I will likely be updating this text in actual time, so please preserve refreshing the web page to view the most recent updates on this story. The primary entry begins on the backside of the web page.
Q3 2024 Earnings Name stay at 4:30pm CT https://t.co/FLyk30QBLk
— Tesla (@Tesla) October 23, 2024
17:38 CDT – And that’s a wrap for Tesla’s Q3 2024 earnings name! Thanks a lot for tuning in. We’ll see you on the subsequent occasion!
17:35 CDT – Adam Jonas from Morgan Stanley asks in regards to the relationship between Tesla and xAI. Are the 2 firms working collectively, or are they competing? Elon Musk notes that xAI has been useful to Tesla AI fairly a variety of instances. Musk additionally highlighted that xAI is making an attempt to make synthetic basic intelligence or superintelligence. Tesla is making an attempt to make autonomous vehicles.
“Tesla is targeted on real-world AI. It’s fairly totally different from an LLM,” Musk mentioned.
17:27 CDT – Elon Musk admitted that there’s a probability HW3 autos wouldn’t obtain the required security stage for unsupervised FSD. If this had been to be the case, Musk famous that Tesla would substitute {Hardware} 3 with {Hardware} 4 freed from cost, not less than for individuals who bought FSD.
“There’s some probability that HW3 doesn’t obtain a security stage that enables for unsupervised FSD. If that seems to be the case, we’ll improve these two have purchased HW3 FSD free of charge,” Musk mentioned.
17:24 CDT – A query in regards to the Roadster is requested. Musk admitted that the Roadster’s reservation holders have been struggling for some time. He provides that the Roadster is the cherry on prime of the icing on the cake. He did, nevertheless, state that the Roadster must be behind a few of the firm’s extra prudent merchandise.
17:18 CDT – The entire Tesla Semi which were deployed, round 200 to this point, are outfitted with the required tools for FSD. Musk famous that FSD could be an enormous step for security for vehicles.
One other query is requested about Unsupervised FSD’s deployment in CA subsequent yr. Elon Musk famous that California loves laws, however he could be shocked if Tesla doesn’t get authorized subsequent yr. Firms like Waymo are capable of deploy driverless vehicles within the state, in any case.
Musk quipped that there must be a federal approval course of for autonomous autos. “I feel we should always have this nationwide approval course of for autonomy,” Musk mentioned.
17:13 CDT – One other query is requested in regards to the Tesla Semi. Tesla executives famous that the ability is on observe to begin preliminary builds subsequent yr, with manufacturing ramping full blast in 2026. Musk famous that there’s “ridiculous demand” for the Semi contemplating the car’s extraordinarily low price per mile.
Tesla executives famous that the Semi’s potential is already being confirmed by purchasers like PepsiCo. PepsiCo’s drivers don’t wish to drive some other truck as soon as they check out the Semi.
17:09 CDT – Musk highlighted that the Cybercab is technically a $25,000 automobile, however it’s an autonomous automobile, not manually pushed.
One other query is requested about assuaging wait instances at service facilities. Firm executives highlighted that Tesla continues to be centered on making autos that require as little service as doable.
Tesla, nevertheless, is arising with a system that’s impressed by a manufacturing facility, the place there are totally different lanes which can be devoted to various kinds of repairs. Automation can also be an enormous precedence.
17:05 CDT – Elon Musk highlighted that the Cybercab doesn’t simply characteristic revolutionary design. It additionally options revolutionary manufacturing. “It’s simply actually one thing particular,” Musk mentioned.
17:03 CDT – Investor questions start! First query is in regards to the extra inexpensive automobile. Tesla executives reiterated that plans are underway to provide extra inexpensive vehicles within the first half of subsequent yr. This, nevertheless, doubtless entails decreasing the price of present autos.
As for the $25,000 non-Robotaxi automobile, executives highlighted that Tesla is all in on autonomy. So there aren’t any plans to provide a non-autonomous model of the Cybercab.
17:00 CDT – The CFO highlighted Tesla Vitality’s margins, which handed 30% in Q3. This was because of a mixture of tasks in the course of the quarter. He additionally famous that Tesla Vitality is already filling in its 2024 manufacturing slots.
Tesla’s working bills declined quarter over quarter and yr over yr, partly because of the firm’s restructuring, which occurred in Q2.
16:58 CDT – Tesla’s CFO takes the stage. He famous that Tesla’s automotive revenues grew quarter over quarter and yr over yr. Tesla’s gross sales grew regardless of ASPs dropping.
He notes that Tesla is set to develop unit quantity whereas avoiding a buildup of stock. To assist this technique, Tesla is rolling out compelling financing choices that make its autos extra attainable to shoppers.
Automotive margins improved quarter over quarter as effectively. The manager additionally highlighted that Tesla is targeted on the associated fee per car, and there are quite a few work streams inside the firm to squeeze that price with out compromising on buyer expertise.
16:53 CDT – Elon Musk famous that progress is being made within the Optimus program. He talked about Optimus’ next-generation hand, which options 22 levels of freedom.
“I really feel assured saying that we have now probably the most superior humanoid robotic by a protracted shot,” Musk mentioned, including that rival robots are lacking the AI mind, if not the flexibility to provide the robots at very excessive volumes. Tesla has each, so the corporate’s potential to guide the sector is notable.
““I feel Optimus would be the most useful a part of Tesla,” Musk mentioned.
Musk additionally mentioned Tesla Vitality, significantly its Megafactories. He famous that Lathrop is ramped, and Shanghai is progressing effectively. “It gained’t be lengthy earlier than we’re sipping 100 GWh a yr of stationary storage at Tesla,” Musk mentioned. Musk famous that Tesla wants its vitality enterprise to scale so the corporate can transfer the needle within the vitality sector.
16:48 CDT – Elon Musk reiterated Tesla’s goal of rolling out a ride-hailing service subsequent yr in California and Texas subsequent yr relying on regulatory approval.
He additionally famous that Tesla is not coaching compute-constrained. “The FSD is definitely getting so good that it takes us some time to search out errors. It takes so much to determine if Software program A is best than Software program B, since neither one in all them are making errors,” Musk mentioned.
16:46 CDT – Musk famous that Tesla’s inside estimate is that FSD could be safer than a human driver by Q2 subsequent yr.
“There’s no want to attend for the Robotaxi or the Cybercab to expertise full autonomy. We count on to attain that subsequent yr, with our current car line,” Musk mentioned. He additionally famous that Tesla staff within the Bay Space now have an autonomous ride-hailing service. The service nonetheless makes use of security drivers, although.
16:41 CDT – This doesn’t imply to say that Tesla is not going to be counting on battery suppliers, in fact. The expansion of Tesla Vitality and the corporate’s different companies requires a whole lot of suppliers.
Musk additionally mentioned the progress of FSD, comparable to the discharge of V12.5 and the Cybertruck’s FSD, in addition to Precise Sensible Summon (A.S.S.). He notes that FSD V13 is anticipated to be rolled out quickly. V13 is anticipated to see 5-6x enchancment in miles between interventions.
16:38 CDT – Musk famous that Tesla continues to be on observe to ship extra inexpensive autos beginning within the first half of 2025. “I do wish to give some tough estimate, which is, I feel, 20-30% progress subsequent yr,” Musk mentioned. He additionally famous that he’s “assured of Cybercab reaching quantity manufacturing in 2026.” Tesla is estimating a manufacturing of two million Cybercabs per yr.
Musk said that the 4680 strains are doing effectively. Tesla’s 4680 is quickly approaching the purpose the place it os probably the most aggressive cell available in the market. “I feel if we execute effectively, Tesla’s internally produced cell would be the most cost-competitive cell in North America,” Musk mentioned.
16:35 CDT – Elon Musk makes his opening remarks. He offers a fast recap of Q3. He notes that Tesla achieved file deliveries at a time when the whole trade is challenged. “It’s notable that Tesla is worthwhile regardless of a really difficult automotive atmosphere,” Musk mentioned, highlighting that this quarter is a file Q3 for the corporate.
He notes that Tesla produced its 7 millionth automobile yesterday. He congratulates the Tesla workforce for pulling the feat off. Musk additionally said that Tesla Vitality is doing effectively. He additionally states that the “Tesla workforce did an outstanding job” in the course of the “We, Robotic” occasion.
16:32 CDT – Tesla’s Head of Investor Relations opens the Q3 earnings name. Elon Musk and a variety of executives are current.
Let’s go!
16:29 CDT – One minute to go! Let’s see if this name begins on time.
16:28 CDT – Tesla bull Gary Black of The Future Fund summarized the Q3 earnings outcomes fairly effectively. It’s a beat.
$TSLA beat solidly on 3Q adj eps ($.72 vs $.60 est and vs my $.56 est). TSLA +9.4% AH. Driving the beat:
– Auto GM ex-reg credit was 17.1% vs 14.9% WS est.
– Vitality earnings soared +90% (vitality GM 30.5% vs 24.4% YoY)
– Service earnings soared +91% (providers GM 8.8% vs 6.0% YoY)…— Gary Black (@garyblack00) October 23, 2024
16:25 CDT – It’s 5 minutes earlier than the earnings name and there’s nonetheless no music. Oh, boy, I hope they begin this one on time. No cause to be late anyway, for the reason that Q3 outcomes had been extraordinarily spectacular. TSLA inventory after hours is up 9.44% as of writing.
Aaand there’s Tesla’s techno music. We’re shut, everybody.
16:15 CDT – Hi there, everybody, and welcome to our stay weblog of Tesla’s third quarter 2024 earnings name. Tesla’s Q3 outcomes are the very best we’ve seen in a very long time, so this upcoming earnings name will most likely be fairly memorable. Particularly spectacular was the truth that the Cybertruck reached constructive gross margin within the third quarter. That’s fairly nuts!
Right here’s the livestream of Tesla’s Q3 2024 earnings name.
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