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 report $33.6 billion in money.
The next are stay updates from Tesla’s Q3 2024 earnings name. I shall be updating this text in actual time, so please hold refreshing the web page to view the newest 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 following 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 quite a lot of occasions. Musk additionally highlighted that xAI is making an attempt to make synthetic common intelligence or superintelligence. Tesla is making an attempt to make autonomous vehicles.
“Tesla is concentrated on real-world AI. It’s fairly completely different from an LLM,” Musk stated.
17:27 CDT – Elon Musk admitted that there’s a likelihood 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 many who bought FSD.
“There’s some likelihood that HW3 doesn’t obtain a security stage that permits for unsupervised FSD. If that seems to be the case, we are going to improve these two have purchased HW3 FSD without cost,” Musk stated.
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, nonetheless, state that the Roadster must be behind among the firm’s extra prudent merchandise.
17:18 CDT – All the Tesla Semi which were deployed, round 200 thus far, are geared up with the required tools for FSD. Musk famous that FSD can be an enormous step for security for vans.
One other query is requested about Unsupervised FSD’s deployment in CA subsequent 12 months. Elon Musk famous that California loves rules, however he can be shocked if Tesla doesn’t get authorised subsequent 12 months. Firms like Waymo are capable of deploy driverless vehicles within the state, in spite of everything.
Musk quipped that there ought to be a federal approval course of for autonomous autos. “I feel we should always have this nationwide approval course of for autonomy,” Musk stated.
17:13 CDT – One other query is requested in regards to the Tesla Semi. Tesla executives famous that the ability is on observe to start out preliminary builds subsequent 12 months, with manufacturing ramping full blast in 2026. Musk famous that there’s “ridiculous demand” for the Semi contemplating the car’s extraordinarily low value per mile.
Tesla executives famous that the Semi’s potential is already being confirmed by purchasers like PepsiCo. PepsiCo’s drivers don’t need to drive every 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 occasions at service facilities. Firm executives highlighted that Tesla remains to be centered on making autos that require as little service as potential.
Tesla, nonetheless, is developing with a system that’s impressed by a manufacturing facility, the place there are completely different lanes which might be devoted to various kinds of repairs. Automation can be an enormous precedence.
17:05 CDT – Elon Musk highlighted that the Cybercab doesn’t simply function revolutionary design. It additionally options revolutionary manufacturing. “It’s simply actually one thing particular,” Musk stated.
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 12 months. This, nonetheless, doubtless entails reducing the price of present autos.
As for the $25,000 non-Robotaxi automobile, executives highlighted that Tesla is all in on autonomy. So there are not 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 as a result 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 12 months over 12 months, partly as a result of 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 12 months over 12 months. 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 help 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 chief additionally highlighted that Tesla is concentrated on the associated fee per car, and there are quite a few work streams inside the firm to squeeze that value 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’ve got probably the most superior humanoid robotic by an extended shot,” Musk stated, including that rival robots are lacking the AI mind, if not the power 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 stated.
Musk additionally mentioned Tesla Vitality, significantly its Megafactories. He famous that Lathrop is ramped, and Shanghai is progressing effectively. “It received’t be lengthy earlier than we’re sipping 100 GWh a 12 months of stationary storage at Tesla,” Musk stated. Musk famous that Tesla wants its power enterprise to scale so the corporate can transfer the needle within the power sector.
16:48 CDT – Elon Musk reiterated Tesla’s goal of rolling out a ride-hailing service subsequent 12 months in California and Texas subsequent 12 months relying on regulatory approval.
He additionally famous that Tesla is now 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 every of them are making errors,” Musk stated.
16:46 CDT – Musk famous that Tesla’s inside estimate is that FSD can be safer than a human driver by Q2 subsequent 12 months.
“There’s no want to attend for the Robotaxi or the Cybercab to expertise full autonomy. We anticipate to attain that subsequent 12 months, with our current car line,” Musk stated. 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 won’t be counting on battery suppliers, in fact. The expansion of Tesla Vitality and the corporate’s different companies requires lots of suppliers.
Musk additionally mentioned the progress of FSD, reminiscent of 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 predicted to be rolled out quickly. V13 is predicted to see 5-6x enchancment in miles between interventions.
16:38 CDT – Musk famous that Tesla remains to be on observe to ship extra inexpensive autos beginning within the first half of 2025. “I do need to give some tough estimate, which is, I feel, 20-30% development subsequent 12 months,” Musk stated. He additionally famous that he’s “assured of Cybercab reaching quantity manufacturing in 2026.” Tesla is estimating a manufacturing of two million Cybercabs per 12 months.
Musk said that the 4680 traces 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 stated.
16:35 CDT – Elon Musk makes his opening remarks. He provides a fast recap of Q3. He notes that Tesla achieved report deliveries at a time when your entire business is challenged. “It’s notable that Tesla is worthwhile regardless of a really difficult automotive setting,” Musk stated, highlighting that this quarter is a report 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 quite a lot 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% (power 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 most effective 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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