01—Abstract
Summary
Summary of the 10-Q filed October 24, 2024. Cited figures are marked; the original filing is the authoritative source.
Tesla, Inc. reported strong revenue growth for the third quarter of 2024, with total revenues reaching $25.18 billiona, an increase of 8% year-over-year.
This growth was primarily driven by a significant 52% surge in the Energy Generation and Storage segment, alongside a 2% increase in total automotive revenues. Despite higher revenues, net income attributable to common stockholders saw a decrease for the nine-month period, largely due to increased operating expenses and a higher effective tax rate. The company continues to invest heavily in capital expenditures, with over $11 billionb projected for 2024, focusing on AI, factory expansion, and new product development, including the Cybertruck and advancements in autonomous driving.
While the balance sheet shows robust liquidity with $33.65 billionc in cash and equivalents and investments, the company is navigating macroeconomic headwinds and increasing competition within the automotive sector. The report also highlights ongoing legal proceedings and investigations, which, while not currently quantified, represent potential future risks.
02—Key points
Key Highlights
- Total revenues increased by 8% to $25.18 billion for the third quarter of 2024 compared to the prior year, driven by growth in both automotive and energy segments.
- Energy Generation and Storage segment revenue saw a substantial increase of 52% year-over-year, indicating strong demand for these products.
- Automotive sales revenue grew by 1% in the quarter, supported by increased Model 3/Y deliveries and FSD revenue recognition for Cybertruck, though offset by lower average selling prices.
- Operating cash flow for the nine-month period was strong at $10.11 billion, an increase of $1.22 billion from the prior year, reflecting improved operational performance.
- Capital expenditures remain significant, with expectations exceeding $11 billion for 2024, reflecting continued investment in AI, manufacturing capacity, and new product development.
- Net income attributable to common stockholders decreased by approximately 32% for the nine-month period, impacted by higher operating expenses and a higher effective tax rate.
- The company's cash and cash equivalents and short-term investments increased to $33.65 billion as of September 30, 2024, demonstrating a strong liquidity position.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2024, Tesla, Inc. kept $0.09.
- Revenue$25.18B100.0%
- Cost of revenue−$20.18B80.2%
- Gross profit$5.00B19.8%
- Operating costs−$2.28B9.1%
- Operating income$2.72B10.8%
- Interest, other & tax−$544.0M2.2%
- Net income$2.17B8.6%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2024filed October 24, 2024Financial Statements
Q3 FY2024 against Q3 FY2023
| Line item | Q3 FY2024Q3 FY2023 | Change |
|---|---|---|
| Revenue | $25.18B$23.35B | +7.8% |
| Cost of Revenue | $20.18B$19.17B | +5.3% |
| Gross Profit | $5.00B$4.18B | +19.6% |
| R&D Expenses | $1.04B$1.16B | −10.5% |
| SG&A Expenses | $1.19B$1.25B | −5.3% |
| Operating Expenses | $2.28B$2.41B | −5.6% |
| Operating Income | $2.72B$1.76B | +54.0% |
| Net Income | $2.17B$1.85B | +17.3% |
| EPS (Basic) | $0.68$0.58 | +17.2% |
| EPS (Diluted) | $0.62$0.53 | +17.0% |
| Shares Outstanding (Basic) | 3.20B3.18B | +0.7% |
| Shares Outstanding (Diluted) | 3.50B3.49B | +0.1% |
05—Questions
Frequently Asked Questions
What was Tesla's revenue performance in the third quarter of 2024?
Tesla reported total revenues of $25.18 billion for the three months ended September 30, 2024, an increase of 8% compared to $23.35 billion in the same period of the prior year. This growth was driven by increases in both the automotive segment and significant expansion in the Energy Generation and Storage segment.
How did the Energy Generation and Storage segment perform?
The Energy Generation and Storage segment demonstrated robust growth, with revenue increasing by 52% to $2.38 billion for the third quarter of 2024 compared to $1.56 billion in the prior year. This performance was primarily attributed to increased Megapack and Powerwall deployments.
What is the current liquidity position of Tesla?
As of September 30, 2024, Tesla maintained a strong liquidity position with $18.11 billion in cash and cash equivalents and $15.54 billion in short-term investments, totaling $33.65 billion. The company also reported $5.00 billion in unused committed credit facilities.
How are capital expenditures trending, and what are the key investment areas?
Capital expenditures remain high, with Tesla expecting them to exceed $11.00 billion for the full year 2024. Key investment areas include AI, expansion of manufacturing facilities (like Gigafactories), development of new products such as the Cybertruck and next-generation vehicles, and advancements in battery technology.
06—Continue