Tesla reported Q3 2024 results that surpassed Wall Street expectations as its cost per production unit dropped to a record low.
The electric vehicle (EV) maker reported a 6% year-over-year increase in deliveries for Q3, with 462,890 units delivered. This figure also marks a 4.3% increase from the 443,956 units it delivered in Q2.
Adjusted earnings per share rose to 72 cents, a 9% increase year-over-year. Tesla attributed the strong earnings to increased deliveries, reduced costs per vehicle sold, regulatory credits, and growth in its energy and services segments.
The average cost per unit reached an all-time low of $35,100, 6% lower compared to the same period last year. Tesla says it achieved this thanks to a combination of lower raw material costs, production efficiency, and increased economies of scale.
Total revenue for the quarter stood at $25.2 billion, up 8% year-over-year.
“We delivered strong results in Q3 with growth in vehicle deliveries both sequentially and year-on-year, resulting in record third-quarter volumes. We also recognized our second highest quarter of regulatory credit revenues as other OEMs [Original Equipment Manufacturers] are still behind on meeting emissions requirements,” Tesla said in its presentation of Q3 results to shareholders.
Its new Cybertruck vehicle also reached profitability for the first time, and the company plans to increase production of the vehicle to meet growing demand.
Q3 revenue breakdown
Tesla’s automotive segment reported $20.0 billion in revenue, driven by strong Model 3 and Model Y sales.
Its energy and storage segment reported $2.4 billion in revenue, up 52% year-over-year, thanks to record Powerwall 3 deployment.
Its “services and other” segment reported $2.6 billion in revenue.
Revenue from regulatory credits totaled $739 million in Q3, which, while less than the $890 million reported in the previous quarter, is still the second-highest quarter it’s ever had for revenue from regulatory credits.
More affordable models in the pipeline
Tesla also said that it plans to begin production on more affordable models in the first half of next year. The new models, which will broaden Tesla’s lineup of EVs and expand its customer base, are expected to significantly drive up production volumes.
“Plans for new vehicles, including more affordable models, remain on track for start of production in the first half of 2025. These vehicles will utilize aspects of the next generation platform as well as aspects of our current platforms and will be able to be produced on the same manufacturing lines as our current vehicle line-up,” Tesla said.