Analysts also flagged an improvement to Tesla’s gross margin, which widened to 19.8% in the quarter from 17.9% in the same period last year.
The closely watched financial metric was flattered by US$739 million of revenue from regulatory credits, which it sells to other manufacturers that do not meet EV production-related emissions targets. That was its second-highest ever after the record US$890m in the second quarter
“Despite ongoing macroeconomic conditions, we expect to achieve slight growth in vehicle deliveries in 2024,” Tesla said. “Plans for new vehicles, including more affordable models, remain on track for start of production in the first half of 2025.”
Tesla said that Cybertruck production reported a positive gross margin for the first time – a milestone after years of production delays and recalls – and was the third best-selling EV in the US behind its Model Y and Model 3. The company added that its “Semi” electric truck factory would start production by the end of next year.
Earlier this month, Tesla reported that deliveries rose 6.4% in the third quarter to 462,890 vehicles globally, driven by a surge in Chinese sales that offset weak demand in Europe. While the company retained its position as the top EV maker ahead of China’s BYD, the figures fell slightly short of analysts’ expectations.
Musk has made a strategic pivot towards autonomous driving, artificial intelligence and robotics, telling investors that these technologies would soon be Tesla’s main revenue sources and drive up its valuation. He recently unveiled a prototype for a new fleet of self-driving “cybercabs” that he hopes to have in production before the start of 2027.
However, a lack of engineering or financial details in the splashy “We, Robot” event – held at a movie studio in Los Angeles, where Tesla’s “Optimus” humanoid robots danced to Daft Punk and served beer to attendees – disappointed analysts and investors and the stock fell 9% in the aftermath.
On Wednesday, Tesla also provided an update on the number of Nvidia H100 graphics processing unit chips installed at its Texas manufacturing plant used to train the AI systems that underpin its self-driving technology, called FSD. It said 29,000 were already installed in a cluster at the Gigafactory and this would increase to 50,000 by the end of October.
Musk has also courted controversy for his robust backing of presidential candidate Donald Trump, donating at least US$75m to a pro-Republican group America Pac and personally hosting rallies and town halls in swing states. He is giving away US$1m a day to registered voters in swing states who sign a petition backing free speech and the right to bear arms.
In return, Trump has pledged to make Musk head of a “department of government efficiency” that would make suggestions for cutting spending, bureaucracy and regulations, a position that could benefit his other companies including SpaceX and social media network X.
However, if Trump loses the election, Musk’s political activities risk provoking the ire of Democratic candidate Kamala Harris.
Written by: Stephen Morris
© Financial Times
