Tesla shares jump 9% as profits beat Wall Street expectations

Analysts also reported an improvement in Tesla’s gross margin, which widened to 19.8% in the quarter, compared to 17.9% for the same period last year.

The closely watched financial measure has been flattered by $739 million in revenue from regulatory credits, which it sells to other manufacturers that fail to meet emissions targets linked to electric vehicle production. This is the second highest level on record after the record $890 million in the second quarter.

“Despite current macroeconomic conditions, we expect modest growth in vehicle deliveries in 2024,” Tesla said. “Plans for new vehicles, including more affordable models, remain on track to start production in the first half of 2025.”

Tesla said production of the Cybertruck recorded a positive gross margin for the first time – a milestone after years of production delays and recalls – and was the third best-selling electric vehicle in the United States behind its Model Y and its Model 3. The company added that its “Semi-electric truck factory would begin production by the end of next year.

Earlier this month, Tesla announced that its deliveries rose 6.4% in the third quarter to 462,890 vehicles worldwide, thanks to a surge in sales in China that offset weak demand in Europe. Even though the company retained its position as the leading manufacturer of electric vehicles ahead of China’s BYD, the figures were slightly lower than analysts’ expectations.

Musk made a strategic pivot to autonomous driving, artificial intelligence and robotics, telling investors that these technologies would soon be Tesla’s main sources of revenue and increase its valuation. It recently unveiled a prototype for a new fleet of autonomous “cybertaxis” that it hopes to put into production before early 2027.

However, the lack of technical or financial details at the spectacular “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 participants – disappointed analysts and investors. the stock subsequently fell 9%.

On Wednesday, Tesla also provided an update on the number of Nvidia H100 graphics processing unit chips installed in its Texas manufacturing plant and used to train the AI ​​systems that underpin its autonomous driving technology, called FSD. He said 29,000 were already installed in a cluster at the Gigafactory and that this figure would increase to 50,000 by the end of October.

Musk has also sparked controversy for his strong support of presidential candidate Donald Trump, donating at least $75 million to pro-Republican group America Pac and personally holding rallies and town hall meetings at Pivotal states. It offers $1 million a day to registered voters in key states who sign a petition in support of free speech and the right to bear arms.

In exchange, Trump pledged to appoint Musk to head a “department of government efficiency” that would make suggestions for cutting spending, bureaucracy and regulation, a position that could benefit his other companies, notably SpaceX and the social network X.

However, if Trump loses the election, Musk’s political activities risk angering Democratic candidate Kamala Harris.

Screenwriter: Stephen Morris

© Financial Times