Tesla earnings recap: Stock jumps 12% after hours as company reports big quarterly profit beat
- by AOL
- Oct 23, 2024
- 0 Comments
- 0 Likes Flag 0 Of 5
October 23, 2024 at 7:35 PM
Tesla reported its third-quarter earnings on October 23, with EPS coming in above Wall Street's expectations.
Steve Granitz/FilmMagic via Getty Images
Tesla exceeded Wall Street's profit estimates in its third-quarter earnings.
The stock was up 12% in after-hours trading at the conclusion of the call with analysts.
Elon Musk expects Tesla to receive regulatory approval for autonomous rides in California and Texas next year.
Tesla delivered a quarterly profit that beat Wall Street's expectations as it reported its earnings on Wednesday.
The electric carmaker reported earnings per share of $0.62 — a big beat over analysts' expectations of $0.51.
Revenue came in slightly below analysts' expectations at $25.18 billion for the quarter, an 8% year-over-year increase. Tesla's gross margin, which is closely watched by Wall Street, rose to 19.8%.
The Cybertruck reached profitability, and the company said that "plans for new vehicles, including more affordable models, remain on track for the start of production in the first half of 2025."
The stock was up 12% in after-hours trading at the conclusion of Tesla's analyst call, during which Elon Musk and executives spent most of the time going over prepared remarks or answering previously submitted questions from retail investors. The executives took two questions from analysts dialed into the call.
Earlier this month, Musk revealed Tesla's long-awaited driverless Cybercab robotaxi at its "We, Robot" event. While the event generated considerable hype for Tesla, the driverless taxi plan has been met with skepticism over its feasibility and competition with rivals.
The rollout of the vehicle, which Tesla expects to begin production in 2026, hinges on Tesla receiving regulatory approval for its Full Self-Driving software for fully autonomous rides.
Musk said he expects Tesla to gain regulatory approval for fully autonomous rides in Texas and California next year and called for a pathway to national approval for fully driverless cars. Musk referenced Trump's proposed government-efficiency commission, saying, "if there's a department of government efficiency, I'll try to help make that happen."
In the meantime, Tesla said the adoption of its FSD beta software had increased since the Cybercab event.
The Tesla CEO also discussed lower-cost vehicles, which Tesla the company has said it's working on. Musk said people shouldn't expect Tesla to make a Cybercab model with a steering wheel and pedals, saying a "regular $25K model is pointless" and "silly."
The company is all-in on autonomous vehicles, Musk said.
The call ends with an analyst question about competition between Tesla and xAI.
Musk says Tesla and xAI have helped each other, but notes the two companies have different problems they're aiming to solve. While Tesla is trying to make autonomous cars and robots, xAI is working on AGI, or superintelligence.
Tesla's CFO said "not all AI is equal." While there are areas of collaboration, for the most part, they're responding to different issues, he says.
That's a wrap! The call concludes after just two questions from analysts.
Tesla says it will follow regulations when it comes to humans supervising autonomous rides.
In a follow-up question about regulatory approval in California and whether Tesla plans to launch with human supervisors to start or fully driverless, Tesla said it will follow local regulations and "each state has different requirements" with regards to mileage and needing a safety driver.
"We think we'll be able to have driverless Teslas doing paid rides next year, sometime next year," Musk says.
Tesla turns to analyst questions.
Tesla spent the first hour of the call going over prepared remarks and answering pre-submitted questions from retail investors.
The executives say they will now turn to questions from analysts in the final minutes of the call.
Musk says the Roadster is "the cherry on the icing on the cake.”
That's why it hasn't come out yet, according to Musk.
The CEO says Tesla's larger mission is "to accelerate the progress towards a sustainable energy future." He says the Roadster has to come behind products that "have a more serious impact on the growth of the world." However, he said Tesla is "finally making progress" on the new Roadster and finalizing the design.
"So just thank you to all our suffering Tesla Roadster deposit holders," Musk says.
"It's really going to be something spectacular," Musk adds.
Musk wants national regulatory approval for autonomous vehicles — and mentions Trump's possible government efficiency council.
Musk wants national approval for full autonomy.
Asked about Tesla's timeline for regulatory approval, Musk says "California loves regulation."
Musk says there is a "pathway" for regulatory approval — "obviously Waymo operates in California."
Musk reiterates he would "be shocked" if they didn't get approval next year. Tesla says toward the end of the year, approval will branch out beyond California and Texas.
Musk references Trump's proposed government efficiency council, saying "if there's a department of government efficiency, I'll try to help make that happen."
Musk talks Tesla Semi.
Please first to comment
Related Post
Stay Connected
Tweets by elonmuskTo get the latest tweets please make sure you are logged in on X on this browser.
Sponsored
Popular Post
Tesla: Buy This Dip, Energy Growth And Margin Recovery Are Vastly Underappreciated
28 ViewsJul 29 ,2024