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 earnings within the third quarter, and a document $33.6 billion in money.
The next are dwell updates from Tesla’s Q3 2024 earnings name. I will likely be updating this text in actual time, so please hold 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 dwell 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 concerning the relationship between Tesla and xAI. Are the 2 corporations working collectively, or are they competing? Elon Musk notes that xAI has been useful to Tesla AI fairly plenty of instances. Musk additionally highlighted that xAI is attempting to make synthetic common intelligence or superintelligence. Tesla is attempting to make autonomous automobiles.
“Tesla is targeted on real-world AI. It’s fairly completely different from an LLM,” Musk stated.
17:27 CDT – Elon Musk admitted that there’s a probability HW3 automobiles wouldn’t obtain the mandatory security degree for unsupervised FSD. If this have been to be the case, Musk famous that Tesla would exchange {Hardware} 3 with {Hardware} 4 freed from cost, at the very least for individuals who bought FSD.
“There may be some probability that HW3 doesn’t obtain a security degree 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 concerning 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 high of the icing on the cake. He did, nevertheless, state that the Roadster must be behind a number of the firm’s extra prudent merchandise.
17:18 CDT – All the Tesla Semi which have been deployed, round 200 thus far, are geared up with the mandatory 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 yr. Elon Musk famous that California loves laws, however he can be shocked if Tesla doesn’t get authorized subsequent yr. Firms like Waymo are capable of deploy driverless automobiles within the state, in any case.
Musk quipped that there must be a federal approval course of for autonomous automobiles. “I feel we must always have this nationwide approval course of for autonomy,” Musk stated.
17:13 CDT – One other query is requested concerning the Tesla Semi. Tesla executives famous that the power 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 automobile’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 another 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 remains to be targeted on making automobiles that require as little service as doable.
Tesla, nevertheless, is developing with a system that’s impressed by a manufacturing facility, the place there are completely different lanes which can be devoted to several types of repairs. Automation can also 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 concerning the extra inexpensive automobile. Tesla executives reiterated that plans are underway to provide extra inexpensive automobiles within the first half of subsequent yr. This, nevertheless, probably entails decreasing the price of present automobiles.
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 Power’s margins, which handed 30% in Q3. This was as a consequence of a mixture of initiatives through the quarter. He additionally famous that Tesla Power 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 automobiles extra attainable to shoppers.
Automotive margins improved quarter over quarter as properly. The manager additionally highlighted that Tesla is targeted on the associated fee per automobile, 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’ve probably the most superior humanoid robotic by an extended shot,” Musk stated, 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 stated.
Musk additionally mentioned Tesla Power, notably its Megafactories. He famous that Lathrop is ramped, and Shanghai is progressing properly. “It received’t be lengthy earlier than we’re sipping 100 GWh a yr of stationary storage at Tesla,” Musk stated. 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 loads 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 inner estimate is that FSD can 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 realize that subsequent yr, with our present automobile 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 is not going to be counting on battery suppliers, in fact. The expansion of Tesla Power and the corporate’s different companies requires loads 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 remains to be on observe to ship extra inexpensive automobiles beginning within the first half of 2025. “I do wish to give some tough estimate, which is, I feel, 20-30% development subsequent yr,” 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 yr.
Musk acknowledged that the 4680 traces are doing properly. 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 properly, 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 offers a fast recap of Q3. He notes that Tesla achieved document deliveries at a time when your complete trade is challenged. “It’s notable that Tesla is worthwhile regardless of a really difficult automotive surroundings,” Musk stated, highlighting that this quarter is a document 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 acknowledged that Tesla Power is doing properly. He additionally states that the “Tesla workforce did an outstanding job” through the “We, Robotic” occasion.
16:32 CDT – Tesla’s Head of Investor Relations opens the Q3 earnings name. Elon Musk and plenty 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 properly. 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.
– Power earnings soared +90% (vitality GM 30.5% vs 24.4% YoY)
– Service earnings soared +91% (companies 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, because the Q3 outcomes have 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 – Hey, everybody, and welcome to our dwell weblog of Tesla’s third quarter 2024 earnings name. Tesla’s Q3 outcomes are one of the best we’ve seen in a very long time, so this upcoming earnings name will in all probability 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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