Tesla Reports 7.8% Revenue Growth in Q3 2024, Net Income Up 17%

Tesla, Inc. reported significant financial results for the third quarter and the nine months ended September 30, 2024, reflecting both growth and challenges in its operations. Total revenues for the three months reached $25,182 million, an increase of $1,832 million (7.8%) compared to $23,350 million in the same period of 2023. For the nine months, revenues were $71,983 million, a modest increase of $377 million (0.5%) from $71,606 million in the prior year.

Automotive revenues for Q3 2024 were $20,016 million, up from $19,625 million in Q3 2023, with automotive sales contributing $18,831 million, a slight increase from $18,582 million. However, for the nine-month period, automotive sales revenue decreased by $4,058 million (7%) to $53,821 million compared to $57,879 million in 2023. The company also saw a notable rise in regulatory credits revenue, which increased by 33% to $739 million for Q3 2024.

Gross profit for the three months ended September 30, 2024, was $4,997 million, compared to $4,178 million in the same period last year. The net income attributable to common stockholders for Q3 2024 was $2,167 million, an increase of $314 million (17%) from $1,853 million in Q3 2023. However, net income for the nine months decreased to $4,774 million, down from $7,069 million in the same period of 2023.

Tesla's total assets increased to $119,852 million as of September 30, 2024, up from $106,618 million at the end of 2023. Cash and cash equivalents rose to $18,111 million, compared to $16,398 million at the end of 2023. The company’s total debt and finance leases increased significantly to $7,415 million, up from $3,777 million at the end of 2023, primarily due to new debt issuances.

Strategically, Tesla is focused on expanding its manufacturing capacity, particularly for newer models like the Cybertruck and Tesla Semi. The company is also enhancing its energy storage product production and has initiated the construction of a new Megafactory in Shanghai. Restructuring efforts in Q2 2024 resulted in $583 million in employee termination expenses, reflecting ongoing cost reduction initiatives.

The effective tax rate for Q3 2024 increased to 22%, up from 8% in the same period of 2023, attributed to changes in the mix of jurisdictional earnings and the release of a valuation allowance on U.S. deferred tax assets. Tesla continues to navigate challenges such as inflationary pressures and rising interest rates, which have impacted vehicle affordability and financing arrangements.