Connect with us

Investor's Corner

LIVE BLOG: Tesla (TSLA) Q3 2024 earnings call

Credit: Tesla

Published

on

Tesla’s (NASDAQ:TSLA) Q3 2024 earnings call comes on the heels of the company’s Q3 2024 Update Letter, which was released after the closing bell on Wednesday, October 23, 2024. 

Tesla posted total revenues of $25.18 billion, with automotive revenues of $20.02 billion in Q3 2024. The company also posted non-GAAP earnings per share of $0.72 and GAAP EPS of $0.62. Tesla posted $2.7 billion GAAP operating income in the third quarter, and a record $33.6 billion in cash.

The following are live updates from Tesla’s Q3 2024 earnings call. I will be updating this article in real time, so please keep refreshing the page to view the latest updates on this story. The first entry starts at the bottom of the page. 

17:38 CDT – And that’s a wrap for Tesla’s Q3 2024 earnings call! Thank you so much for tuning in. We’ll see you on the next event!

17:35 CDT – Adam Jonas from Morgan Stanley asks about the relationship between Tesla and xAI. Are the two companies working together, or are they competing? Elon Musk notes that xAI has been helpful to Tesla AI quite a number of times. Musk also highlighted that xAI is trying to make artificial general intelligence or superintelligence. Tesla is trying to make autonomous cars.

Advertisement

“Tesla is focused on real-world AI. It’s quite different from an LLM,” Musk said.

17:27 CDT – Elon Musk admitted that there is a chance HW3 vehicles would not achieve the necessary safety level for unsupervised FSD. If this were to be the case, Musk noted that Tesla would replace Hardware 3 with Hardware 4 free of charge, at least for those who purchased FSD.

“There is some chance that HW3 does not achieve a safety level that allows for unsupervised FSD. If that turns out to be the case, we will upgrade those two have bought HW3 FSD for free,” Musk said.

17:24 CDT – A question about the Roadster is asked. Musk admitted that the Roadster’s reservation holders have been suffering for a while. He adds that the Roadster is the cherry on top of the icing on the cake. He did, however, state that the Roadster would have to be behind some of the company’s more prudent products.

17:18 CDT – All of the Tesla Semi that have been deployed, around 200 so far, are equipped with the necessary equipment for FSD. Musk noted that FSD would be a huge step for safety for trucks. 

Advertisement

Another question is asked about Unsupervised FSD’s deployment in CA next year. Elon Musk noted that California loves regulations, but he would be shocked if Tesla does not get approved next year. Companies like Waymo are able to deploy driverless cars in the state, after all. 

Musk quipped that there should be a federal approval process for autonomous vehicles. “I think we should have this national approval process for autonomy,” Musk said.

17:13 CDT – Another question is asked about the Tesla Semi. Tesla executives noted that the facility is on track to start initial builds next year, with production ramping full blast in 2026. Musk noted that there is “ridiculous demand” for the Semi considering the vehicle’s extremely low cost per mile. 

Tesla executives noted that the Semi’s potential is already being proven by clients like PepsiCo. PepsiCo’s drivers do not want to drive any other truck once they try out the Semi. 

17:09 CDT – Musk highlighted that the Cybercab is technically a $25,000 car, but it is an autonomous car, not manually driven. 

Advertisement

Another question is asked about alleviating wait times at service centers. Company executives highlighted that Tesla is still focused on making vehicles that require as little service as possible. 

Tesla, however, is coming up with a system that is inspired by a factory, where there are different lanes that are dedicated to different types of repairs. Automation is also a huge priority.

17:05 CDT – Elon Musk highlighted that the Cybercab does not just feature revolutionary design. It also features revolutionary manufacturing. “It is just really something special,” Musk said. 

17:03 CDT – Investor questions begin! First question is about the more affordable car. Tesla executives reiterated that plans are underway to produce more affordable cars in the first half of next year. This, however, likely involves lowering the cost of current vehicles. 

As for the $25,000 non-Robotaxi car, executives highlighted that Tesla is all in on autonomy. So there are no plans to produce a non-autonomous version of the Cybercab.

Advertisement

17:00 CDT – The CFO highlighted Tesla Energy’s margins, which passed 30% in Q3. This was due to a mix of projects during the quarter. He also noted that Tesla Energy is already filling in its 2024 production slots. 

Tesla’s operating expenses declined quarter over quarter and year over year, partly due to the company’s restructuring, which happened in Q2. 

16:58 CDT – Tesla’s CFO takes the stage. He noted that Tesla’s automotive revenues grew quarter over quarter and year over year. Tesla’s sales grew despite ASPs dropping.

He notes that Tesla is determined to grow unit volume while avoiding a buildup of inventory. To support this strategy, Tesla is rolling out compelling financing options that make its vehicles more attainable to consumers. 

Automotive margins improved quarter over quarter as well. The executive also highlighted that Tesla is focused on the cost per vehicle, and there are numerous work streams within the company to squeeze that cost without compromising on customer experience.

16:53 CDT – Elon Musk noted that progress is being made in the Optimus program. He mentioned Optimus’ next-generation hand, which features 22 degrees of freedom.

Advertisement

“I feel confident saying that we have the most advanced humanoid robot by a long shot,” Musk said, adding that rival robots are missing the AI brain, if not the ability to produce the robots at very high volumes. Tesla has both, so the company’s potential to lead the sector is notable.

““I think Optimus will be the most valuable part of Tesla,” Musk said.

Musk also discussed Tesla Energy, particularly its Megafactories. He noted that Lathrop is ramped, and Shanghai is progressing well. “It won’t be long before we’re sipping 100 GWh a year of stationary storage at Tesla,” Musk said. Musk noted that Tesla needs its energy business to scale so the company can move the needle in the energy sector.

16:48 CDT – Elon Musk reiterated Tesla’s target of rolling out a ride-hailing service next year in California and Texas next year depending on regulatory approval.

He also noted that Tesla is no longer training compute-constrained. “The FSD is actually getting so good that it takes us a while to find mistakes. It takes a lot to figure out if Software A is better than Software B, since neither one of them are making mistakes,” Musk said.

Advertisement

16:46 CDT – Musk noted that Tesla’s internal estimate is that FSD would be safer than a human driver by Q2 next year. 

“There’s no need to wait for the Robotaxi or the Cybercab to experience full autonomy. We expect to achieve that next year, with our existing vehicle line,” Musk said. He also noted that Tesla employees in the Bay Area now have an autonomous ride-hailing service. The service still uses safety drivers, though.

16:41 CDT – This does not mean to say that Tesla will not be relying on battery suppliers, of course. The growth of Tesla Energy and the company’s other businesses requires a lot of suppliers. 

Musk also discussed the progress of FSD, such as the release of V12.5 and the Cybertruck’s FSD, as well as Actual Smart Summon (A.S.S.). He notes that FSD V13 is expected to be rolled out soon. V13 is expected to see 5-6x improvement in miles between interventions. 

16:38 CDT – Musk noted that Tesla is still on track to deliver more affordable vehicles starting in the first half of 2025. “I do want to give some rough estimate, which is, I think, 20-30% growth next year,” Musk said. He also noted that he is “confident of Cybercab reaching volume production in 2026.” Tesla is estimating a production of 2 million Cybercabs per year. 

Advertisement

Musk stated that the 4680 lines are doing well. Tesla’s 4680 is rapidly approaching the point where it os the most competitive cell in the market. “I think if we execute well, Tesla’s internally produced cell will be the most cost-competitive cell in North America,” Musk said.

16:35 CDT – Elon Musk makes his opening remarks. He gives a quick recap of Q3. He notes that Tesla achieved record deliveries at a time when the entire industry is challenged. “It’s notable that Tesla is profitable despite a very challenging automotive environment,” Musk said, highlighting that this quarter is a record Q3 for the company. 

He notes that Tesla produced its 7 millionth car yesterday. He congratulates the Tesla team for pulling the feat off. Musk also stated that Tesla Energy is doing well. He also states that the “Tesla team did a phenomenal job” during the “We, Robot” event. 

16:32 CDT – Tesla’s Head of Investor Relations opens the Q3 earnings call. Elon Musk and a number of executives are present.

Let’s go!

Advertisement

16:29 CDT – One minute to go! Let’s see if this call starts on time.

16:28 CDT – Tesla bull Gary Black of The Future Fund summarized the Q3 earnings results pretty well. It’s a beat.

16:25 CDT – It’s five minutes before the earnings call and there’s still no music. Oh, boy, I hope they start this one on time. No reason to be late anyway, since the Q3 results were extremely impressive. TSLA stock after hours is up 9.44% as of writing.

Aaand there’s Tesla’s techno music. We’re close, everyone.

16:15 CDT – Hello, everyone, and welcome to our live blog of Tesla’s third quarter 2024 earnings call. Tesla’s Q3 results are the best we’ve seen in a long time, so this upcoming earnings call will probably be pretty memorable. Especially impressive was the fact that the Cybertruck reached positive gross margin in the third quarter. That’s pretty nuts!

Advertisement

Here’s the livestream of Tesla’s Q3 2024 earnings call.

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

Advertisement
Comments

Investor's Corner

Shareholder group urges Nasdaq probe into Elon Musk’s Tesla 2025 CEO Interim Award

The SOC Investment Group represents pension funds tied to more than two million union members, many of whom hold shares in TSLA.

Published

on

Credit: xAI/X

An investment group is urging Nasdaq to investigate Tesla (NASDAQ:TSLA) over its recent $29 billion equity award for CEO Elon Musk. 

The SOC Investment Group, which represents pension funds tied to more than two million union members—many of whom hold shares in TSLA—sent a letter to the exchange citing “serious concerns” that the package sidestepped shareholder approval and violated compensation rules.

Concerns over Tesla’s 2025 CEO Interim Award

In its August 19 letter to Nasdaq enforcement chief Erik Wittman, SOC alleged that Tesla’s board improperly granted Musk a “2025 CEO Interim Award” under the company’s 2019 Equity Incentive Plan. That plan, the group noted, explicitly excluded Musk when it was approved by shareholders. SOC argued that the new equity grant effectively expanded the plan to cover Musk, a material change that should have required a shareholder vote under Nasdaq rules.

The $29 billion package was designed to replace Musk’s overturned $56 billion award from 2018, which the Delaware Chancery Court struck down, prompting Tesla to file an appeal to the Delaware Supreme Court. The interim award contains restrictions: Musk must remain in a leadership role until August 2027, and vested shares cannot be sold until 2030, as per a Yahoo Finance report.

Even so, critics such as SOC have argued that the plan does not have of performance targets, calling it a “fog-the-mirror” award. This means that “If you’re around and have enough breath left in you to fog the mirror, you get them,” stated Brian Dunn, the director of the Institute for Comprehension Studies at Cornell University.

Advertisement

SOC’s Tesla concerns beyond Elon Musk

SOC’s concerns extend beyond the mechanics of Musk’s pay. The group has long questioned the independence of Tesla’s board, opposing the reelection of directors such as Kimbal Musk and James Murdoch. It has also urged regulators to review Tesla’s governance practices, including past proposals to shrink the board. 

SOC has also joined initiatives calling for Tesla to adopt comprehensive labor rights policies, including noninterference with worker organizing and compliance with global labor standards. The investment group has also been involved in webinars and resolutions highlighting the risks related to Tesla’s approach to unions, as well as labor issues across several countries.

Tesla has not yet publicly responded to SOC’s latest letter, nor to requests for comment.

The SOC’s letter can be viewed below.

Nasdaq+Letter Tsla Socig Final by Simon Alvarez

Advertisement
Continue Reading

Investor's Corner

Tesla investors may be in for a big surprise

All signs point toward a strong quarter for Tesla in terms of deliveries. Investors could be in for a surprise.

Published

on

(Credit: Tesla)

Tesla investors have plenty of things to be ecstatic about, considering the company’s confidence in autonomy, AI, robotics, cars, and energy. However, many of them may be in for a big surprise as the end of the $7,500 EV tax credit nears. On September 30, it will be gone for good.

This has put some skepticism in the minds of some investors: the lack of a $7,500 discount for buying a clean energy vehicle may deter many people from affording Tesla’s industry-leading EVs.

Tesla warns consumers of huge, time-sensitive change coming soon

The focus on quarterly deliveries, while potentially waning in terms of importance to the future, is still a big indicator of demand, at least as of now. Of course, there are other factors, most of them economic.

The big push to make the most of the final quarter of the EV tax credit is evident, as Tesla is reminding consumers on social media platforms and through email communications that the $7,500 discount will not be here forever. It will be gone sooner rather than later.

It appears the push to maximize sales this quarter before having to assess how much they will be impacted by the tax credit’s removal is working.

Delivery Wait Time Increases

Wait times for Tesla vehicles are increasing due to what appears to be increased demand for the company’s vehicles. Recently, Model Y delivery wait times were increased from 1-3 weeks to 4-6 weeks.

This puts extra pressure on consumers to pull the trigger on an order, as delivery must be completed by the cutoff date of September 30.

Delivery wait times may have gone up due to an increase in demand as consumers push to make a purchase before losing that $7,500 discount.

More People are Ordering

A post on X by notable Tesla influencer Sawyer Merritt anecdotally shows he has been receiving more DMs than normal from people stating that they’re ordering vehicles before the end of the tax credit:

It’s not necessarily a confirmation of more orders, but it could be an indication that things are certainly looking that way.

Why Investors Could Be Surprised

Tesla investors could see some positive movement in stock price following the release of the Q3 delivery report, especially if all signs point to increased demand this quarter.

We reported previously that this could end up being a very strong rebounding quarter for Tesla, with so many people taking advantage of the tax credit.

Whether the delivery figures will be higher than normal remains to be seen. But all indications seem to point to Q3 being a very strong quarter for Tesla.

Continue Reading

Elon Musk

Tesla bear Guggenheim sees nearly 50% drop off in stock price in new note

Tesla bear Guggenheim does not see any upside in Robotaxi.

Published

on

tesla showroom
Credit: Tesla

Tesla bear Guggenheim is still among the biggest non-believers in the company’s overall mission and its devotion to solving self-driving.

In a new note to investors on Thursday, analyst Ronald Jewsikow reiterated his price target of $175, a nearly 50 percent drop off, with a ‘Sell’ rating, all based on skepticism regarding Tesla’s execution of the Robotaxi platform.

A few days ago, Tesla CEO Elon Musk said the company’s Robotaxi platform would open to the public in September, offering driverless rides to anyone in the Austin area within its geofence, which is roughly 90 square miles large.

Tesla CEO Elon Musk confirms Robotaxi is opening to the public: here’s when

However, Jewsikow’s skepticism regarding this timeline has to do with what’s going on inside of the vehicles. The analyst was willing to give props to Robotaxi, saying that Musk’s estimation of a September public launch would be a “key step” in offering the service to a broader population.

Where Jewsikow’s real issue lies is with Tesla’s lack of transparency on the Safety Monitors, and how bulls are willing to overlook their importance.

Much of this bullish mentality comes from the fact that the Monitors are not sitting in the driver’s seat, and they don’t have anything to do with the overall operation of the vehicle.

Musk also said last month that reducing Safety Monitors could come “in a month or two.”

Instead, they’re just there to make sure everything runs smoothly.

Jewsikow said:

“While safety drivers will remain, and no timeline has been provided for their removal, bulls have been willing to overlook the optics of safety drivers in TSLA vehicles, and we see no reason why that would change now.”

He also commented on Musk’s recent indication that Tesla was working on a 10x parameter count that could help make Full Self-Driving even more accurate. It could be one of the pieces to Tesla solving autonomy.

Jewsikow added:

“Perhaps most importantly for investors bullish on TSLA for the fleet of potential FSD-enabled vehicles today, the 10x higher parameter count will be able to run on the current generation of FSD hardware and inference compute.”

Elon Musk teases crazy new Tesla FSD model: here’s when it’s coming

Tesla shares are down just about 2 percent today, trading at $332.47.

Continue Reading

Trending