Tesla stock on a rampage, Elon Musk’s predicts strong vehicle growth

Tesla's third-quarter profits on Wednesday were impressive, despite revenue coming in slightly shy of expectations

Olumide Adesina•Thursday, October 24, 2024•2 min read

Tesla’s third-quarter profits on Wednesday were impressive, despite revenue coming in slightly shy of expectations. The stock price increased by 12% during extended trading. The stock was down 18% in October before yesterday’s rally, headed for its worst month since January. Over the year, the Nasdaq gained 22%, while the shares plummeted 14%.

An LSEG survey of analysts found the following differences between Wall Street’s expectations and the company’s report: Revenue was $25.18 billion instead of the expected $25.37 billion.
Revenue climbed 8% to $23.35 billion from $1.85 billion, or 53 cents per share, in the same period last year. Net income increased to almost $2.17 billion, or 62 cents per share.

During the quarter, $739 million in automobile regulatory credit revenue helped to boost profit margins.

Automotive revenue increased 2% to $20 billion from $19.63 billion in the same month the previous year, and it has been comparatively steady since late 2022. Energy generation and storage revenue jumped 52% to $2.38 billion, while services and other revenue from non-warranty repairs of Tesla vehicles—rose 29% to $2.79 billion.

Elon Musk, the CEO, stated on the earnings call that he believes the “advent of autonomy” and “lower cost vehicles” will cause “vehicle growth” to reach 20% to 30% in the upcoming year. According to a FactSet survey of analysts, deliveries were predicted to rise by around 15% to 2.04 million next year.

Musk stated that all of Tesla’s vehicles going forward would be autonomous when asked on the call if the business would produce a less expensive EV that isn’t a Cybercab. According to him, the “vast majority” of the 7 million cars that Tesla has made so far are “capable of autonomy,” and the business is “currently making on the order of 35,000 autonomous vehicles a week.”

Tesla still does not manufacture or market safe vehicles without a human driver constantly present to steer or brake. Musk said that the company would eventually produce two million Cybercabs annually and begin delivering driverless ride-hailing cars in Texas and perhaps California as early as 2025.

According to him, certain Californian employees have been able to utilize a ride-hailing app that Tesla built this year. Even though the previous president opposes federal expenditure on EVs, charging infrastructure, and environmental laws that have helped Tesla for years, Musk has spent tens of millions to help Trump return to the White House.

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ABOUT THE AUTHOR See More

Olumide Adesina

Financial Market Writer

Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.