October 23, 2024, Tesla announced revenue of $25.182B up 8% yoy and net income $2.167B up 17% yoy for Q3 2024. https://digitalassets.tesla.com/tesla-contents/image/upload/IR/TSLA-Q3-2024-Update.pdf
Automotive revenue hit $20.016B up 2%. Energy generation and storage revenue was $2.376B, up 52% yoy. Services and other revenue was $2.790B up 29% yoy. Cost of goods per vehicle came down to a record $35,100. Free cash flow is $2.7B and total cash is $33.6B.
Tesla confirmed the lower cost model will be in production first half of 2025. Elon Musk predicts automotive revenue will grow between 20 to 30% in 2025 due to new model expanding the TAM. The lower cost model achieves its lower price by using some next generation platform techniques and existing platforms. While not the full benefits of the unbox method, it will result in some cost savings while reducing cap-ex by leverage the capacity of the existing production lines. Expectation of revenue growth in 2025 got investors excited and potentially got investors who have been on the side line to return. Tesla shares price finished strong the next day after earnings. It finished the day $260.48, up +46.83 (+21.92%) on volume of 186,918,069. It is closing on its 52 week high of 271.00.
During the analyst conference all, Elon Musk presented good news for owners of HW3 Model 3s. In the event the HW3 is not powerful enough for unsupervised FSD, Tesla will upgrade HW3 to a HW4 processor free of charge. Tesla believe the existing cameras on HW3 are sufficient. The compute capacity of HW3 is nearly maxed out.