Tesla's Q3 earnings exceed expectations! Cybertruck gross profit turns positive, with the automotive business gross margin exceeding expectations at 17.1%

Zhitong Finance APP learned that Tesla (TSLA.US) released its third-quarter financial report after the U.S. stock market closed on Wednesday. Against the backdrop of intensified competition in the electric vehicle market, the company's net profit for the quarter exceeded analysts' expectations. Moreover, the electric truck Cybertruck, which began deliveries in November last year, achieved a positive gross profit margin for the first time. Following the release of the financial report, Tesla's stock price surged more than 11% in after-hours trading. In the third quarter, Tesla's revenue increased by 8% year-on-year, rising from $23.35 billion last year to $25.18 billion, slightly below the expected $25.37 billion. Net profit increased from $1.85 billion (53 cents per share) last year to $2.17 billion (62 cents per share), surpassing analysts' expectations. The non-GAAP diluted earnings per share (EPS) for the third quarter were $0.72, up nearly 9.1% year-on-year, compared to analysts' estimate of $0.60. This marked a 43% decrease from the second quarter. The profit margin benefited from the support of revenue from selling regulatory credits. In the third quarter, Tesla generated $739 million in revenue from selling regulatory credits. Every year, automakers need to obtain a certain number of regulatory credits. If they fail to meet the target, they can purchase surplus credits from pure electric vehicle companies like Tesla. Tesla's automotive revenue increased by 2% year-on-year, rising from $19.63 billion last year to $20 billion, maintaining relative stability since the end of 2022. On the other hand, energy generation and storage revenue soared by 52% to $2.38 billion, while services and other revenue (including non-warranty repair revenue for Tesla vehicles) increased by 29% to $2.79 billion year-on-year. More importantly, excluding revenue from selling regulatory credits, the automotive gross margin rose to 17.1%, an increase of approximately 250 basis points from the second quarter, surpassing analysts' expectations of a 20 basis point increase to 14.8% from the second quarter. In the shareholder report, Tesla announced that as of October 22nd, the company had produced 7 million vehicles. Its latest release, the Cybertruck, has become the third best-selling pure electric vehicle model in the United States, following only the Model 3 and Model Y. Despite quality issues in Cybertruck production, Tesla sold over 16,000 Cybertrucks in the United States in the third quarter. Tesla stated that the Cybertruck achieved a positive gross profit margin for the first time. Earlier this month, Tesla reported vehicle deliveries of 462,890 units and production of 469,796 units in the third quarter. Although deliveries increased by 6% year-on-year, they fell below analysts' expectations, marking the third consecutive quarter of year-on-year decline. To boost sales, Tesla offered various discounts and incentives Tesla stated in its financial report on Wednesday: "Despite the ongoing uncertain macroeconomic environment, we expect a slight increase in vehicle deliveries in 2024." The company also reiterated its goal of introducing more competitively priced models in the first half of 2025. Tesla is currently facing increasing competitive pressure, with challenges from emerging car companies such as BYD, Geely, Li Auto, and Nio becoming more prominent. In the United States, traditional car manufacturers like Ford and General Motors are also starting to sell more electric vehicles, although they have slowed down their electrification commitments in some aspects. The release of this financial report comes less than two weeks after Tesla's highly anticipated autonomous taxi unveiling event, which failed to provide shareholders with more details and left them disappointed. Before the stock price rose after hours on Wednesday, Tesla's stock had already fallen by 18% in October, heading towards its worst month since January. Year-to-date, Tesla's stock has dropped by 14%, while the Nasdaq index has risen by 22% during the same period