The electric car giant Tesla announced strong third-quarter earnings, with record-breaking car deliveries and significant revenue and profitability improvements over the previous year. Rising demand for EVs, reduced production costs, and an expanded range of energy products were cited by the corporation as the reasons for its impressive performance.
Tesla’s second-highest quarter for regulatory credit revenues and record Q3 vehicle delivery numbers, both sequentially and annually, highlighted the ongoing difficulties rival automakers are having satisfying emissions regulations. With its cost of goods sold (COGS) per vehicle hitting a record low of about $35,100, Tesla is demonstrating its dedication to lowering the cost of electric vehicles (EVs). With the long-term objective of providing autonomous transportation at a cost per mile lower than traditional car ownership, ridesharing, and even public transit, new vehicle types, including less expensive EVs, are anticipated to make their debut in early 2025.
In Q3, total revenue reached $25.2 billion, an 8% year-over-year increase. greater vehicle deliveries, improved Energy Generation and Storage revenues, and greater revenue from the deployment of Full Self-Driving (FSD) features on models such as the Cybertruck were the main drivers of this growth.
In the third quarter, operating income increased to $2.7 billion, which translates to an operating margin of 10.8%. This margin improvement is a result of cost-cutting measures, increased Energy Generation and Storage profit, and lower costs per vehicle, especially in raw materials and logistics. At the conclusion of the quarter, cash, cash equivalents, and investments totaled $33.6 billion, representing a $2.9 billion sequential increase because of a robust $2.7 billion free cash flow.
Tesla is still committed to strengthening its energy and vehicle options, cutting production costs, and speeding AI-driven projects to support its expanding production capabilities, even in the face of economic problems and some competitors’ decreased investments in EVs.
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