Tesla Q3 Revenue Misses Expectations, but Deliveries Hit Record, Musk: Autopilot to Outperform Humans Next Year

Tesla Q3 Revenue Misses Expectations, but Deliveries Hit Record, Musk: Autopilot to Outperform Humans Next YearOn October 24th, Tesla released its Q3 2024 financial results. The report revealed that Tesla's revenue for the quarter reached $25

Tesla Q3 Revenue Misses Expectations, but Deliveries Hit Record, Musk: Autopilot to Outperform Humans Next Year

On October 24th, Tesla released its Q3 2024 financial results. The report revealed that Tesla's revenue for the quarter reached $25.18 billion, falling short of analysts' expectations of $25.37 billion. Notably, automotive revenue amounted to $20.02 billion. Despite the revenue miss, Tesla recorded a net profit of $2.505 billion, marking an 8% year-over-year increase. Diluted earnings per share reached $0.72, exceeding analyst estimates of $0.58. Operating profits stood at $2.7 billion, and the company held $33.6 billion in cash.

Following the release, a conference call was held with Tesla CEO Elon Musk, CFO Vaibhav Taneja, and other executives to address questions from analysts.

In his opening remarks, Musk acknowledged the numerous challenges facing the automotive industry, stating that Tesla had achieved record deliveries and profitability despite these challenges. He emphasized that this was the company's most successful third quarter in history. He also mentioned that on October 23rd, Tesla had produced its 7 millionth vehicle.

Musk revealed that Tesla plans to deliver more affordable vehicles during the first half of 2025. He predicted, "Next year, we anticipate a sales growth rate of 20% to 30%. The Cybercab will reach mass production in 2026." Tesla aims to produce 2 million self-driving Cybercabs annually.

Musk disclosed that the 4680 battery production line is performing well and is rapidly becoming one of the most competitive electric vehicle batteries in the market. Nonetheless, he affirmed that Tesla would not abandon partnerships with external battery suppliers, acknowledging the need for their support in Tesla's energy business and other areas.

Musk also shared updates on the progress of the Full Self-Driving (FSD) software. This includes the release of version 12.5, the inclusion of FSD functionality in the Cybertruck electric pickup, and the "ActuallySmartSummon" (ASS) feature update. He stated that the FSDv13 version is expected to be released shortly, promising a 5- to 6-fold improvement in the distance between human interventions. He further revealed that Tesla's internal predictions indicate that FSD's safety performance will surpass human drivers by the second quarter of next year. Musk said, "We don't need to wait for Robotaxi or Cybercab to achieve full autonomy, we plan to achieve it on our existing production line next year."

He mentioned that Tesla employees in the Bay Area are already using self-driving ride-hailing services, but these services currently have safety drivers. Musk reiterated Tesla's goal of launching self-driving ride-hailing services in California and Texas starting next year, contingent on regulatory approvals.

Musk praised the improvements in the autopilot system, stating, "Our system is actually performing so well that it takes longer to identify errors. It's very time-consuming to determine if software A is better than software B because both rarely make mistakes."

Furthermore, Musk confirmed that the Optimus project is progressing steadily. He highlighted the hand design of the new generation of robots, boasting 22 degrees of freedom. He stated, "Our humanoid robots are the most advanced. Competitors' robots not only lack the ability to be mass-produced but also lack core AI. Tesla has advantages in both areas, giving us a significant lead in this field. I believe Optimus will become Tesla's most valuable business segment."

Regarding Tesla's energy business, particularly the Gigafactories, Musk pointed out the rapid growth of the Lathrop factory and the excellent performance of the Shanghai factory. He predicted, "Tesla's stationary energy storage product capacity will soon reach 100 gigawatt-hours per year." He emphasized that expanding the energy business is crucial for Tesla's greater advancements in the energy sector.