Tesla has returned to its previous profit levels in the third quarter of 2024, posting a double-digit margin for the first time after a challenging start to the year. The electric vehicle giant reported $25.2 billion in sales, an 8% year-on-year increase, and $2.17 billion in profit, marking a 17% year-on-year rise.
Tesla’s Q3 performance is its second-best sales result, despite an overall slowdown in the electric vehicle market and heightened competition from Chinese automakers. The company attributed its renewed success to cost-cutting measures and the introduction of more variants of its popular Model 3 and Model Y vehicles.
Tesla’s Q3 financial performance contrasts sharply with the disappointing reception of its long-anticipated robotaxi, the Cybercab, introduced two weeks earlier. The futuristic vehicle, which Tesla revealed with a science fiction-inspired presentation, left many observers underwhelmed. Nonetheless, Tesla’s focus on regaining profitability is evident in its quarterly report, which also highlighted plans for “slight growth in vehicle deliveries” in 2024.
TSLA-Q3-2024-Update by Andy Williams
Tesla’s Expanding Non-Automotive Sectors and Supercharger Network
While Tesla’s automotive division contributed $20 billion to the company’s Q3 revenue, growing only 2% year-on-year, its non-automotive sectors showed significant gains. Tesla’s energy business grew by 52%, and its services division by 29%, underscoring the company’s diversification strategy.
The sale of CO2 credits also continued to provide substantial revenue, bringing in $739 million for the quarter. Additionally, Tesla’s Supercharger network expanded by 22% year-on-year, with 2,800 new charging stations added between July and September.
The company highlighted reduced manufacturing costs as a key driver of its improved financial results. The cost per vehicle fell to around $35,100, its lowest level yet. This reduction, combined with price cuts and discount campaigns, helped boost Tesla’s vehicle deliveries to nearly 463,000 units in Q3, up 4.3% from the previous quarter.
Cybertruck Gaining Ground, Robotaxi Launch Set for 2026
Tesla reported increased production of its Cybertruck, which became the third best-selling Tesla model in the U.S. during the quarter, trailing only the Model 3 and Model Y. The company also shared updates on its Cybercab robotaxi, expected to launch in 2026. Tesla revealed that the robotaxi would feature its most efficient powertrain to date, with an estimated range of 5.5 miles per kilowatt-hour. Although the battery size has not been confirmed, Tesla estimates the vehicle could achieve a range of up to 885 kilometers, based on the efficiency data provided.
Looking ahead, Tesla plans to roll out new, more affordable models by 2025, leveraging aspects of both its next-generation and current platforms. Production of the Semi electric truck is expected to begin by late 2025. Despite the company’s cautious outlook, Tesla remains optimistic, forecasting modest growth in vehicle deliveries next year.
