TSLA Q3 2024 Earnings

Call Details

• Call Title: Tesla, Inc. Q3 2024 Earnings Call
• Date: October 23, 2024 at 9:30 PM UTC
• Management Team:
  • Travis Axelrod (Head of Investor Relations)
  • Elon Musk (CEO)
  • Ashok Elluswamy (VP of AI)
  • Bob Mansfield (Vice President of Technology)
  • Gerard (Executive)
  • David (Executive)
  • Ivan Musk (Not disclosed)
  • Devat Taneja (Not disclosed)

Call Summary

Financial Performance

• Q3 generated record operating cash flows of $6.3B.
• FSD and related features contributed $326M of revenue in the quarter.
• Regulatory credit sales have totaled over $2B of revenue year-to-date.
• Energy business reached a Lathrop mega pack factory output of 200 mega packs per week, equating to a 40 GWh/year run rate.
• Energy margins in Q3 were a record at more than 30% for the quarter.
• Automotive revenues grew sequentially and year-over-year while ASPs declined due primarily to financing incentives recognized as upfront reductions to revenue.
• Automotive margins improved quarter-over-quarter due to higher volumes, FSD revenue, commodity pricing benefits, and more localized deliveries reducing freight and duties.
• Service and other operating results improved in Q3 driven by better service performance, collision and parts sales, merchandise, and growing supercharging revenues.

Guidance

• Elon estimated vehicle deliveries growth of roughly 20% to 30% for next year as a best guess subject to macro outages such as war or sharply higher rates.
• Cybercab is expected to reach volume production in 2026 with an internal target of at least 2 million units per year across multiple factories.
• FSD V13 is expected to deliver a large improvement in miles between interventions, with management citing figures ranging from ~50- to 1,000-fold improvements depending on the prior baseline and speaker.
• Internal expectation is that Tesla FSD could cross the average human safety level by Q2 of next year, with acknowledgement that it could slip to Q3.
• Tesla expects to roll out ride-hailing to Texas next year and to pursue California availability next year subject to regulatory approval.
• CapEx for the year is now expected to be in excess of $11B.
• Energy deployments are expected to grow sequentially in Q4 and the company expects to end the year with deployments more than double last year, subject to customer readiness and project timing.