Tesla Stock: Tesla Earnings Unexpectedly Rise 9% in Q3 as Elon Musk's Conference Call Approaches (Live Coverage)

Tesla (TSLA) late Wednesday reported a surprise third-quarter profit increase. Quarterly profit rose 9%, capping a month of announcements for the electric vehicle giant. Sales were low. But Tesla shares rose sharply after the market closed on Wednesday.

The focus will now turn to Elon Musk and the Tesla earnings release, which is scheduled to begin at 5:30 p.m. ET.

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5:06 p.m. ET

Tesla shares are rising, but what else?

Tesla shares are up 9% in late trading, signaling a return above the 50-day line. That leads to a slight increase in Nasdaq 100 futures, but the broader impact is muted. Rivian (RIVN) rose slightly along with Chinese electric vehicle manufacturers Li car (LI) and Nio (NOK). But these have relatively small market capitalizations.

4:53 p.m. ET

Have Tesla car margins bottomed out?

According to @TroyTeslike on

4:45 p.m. ET

Tesla Cybertruck gross margin positive

According to Tesla, the Cybertruck achieved a positive gross margin for the first time in the third quarter.

Tesla recently discontinued the Foundation series Cybertruck variants, which cost an additional $20,000. The regular Cybertruck variants are now priced at $79,990 and $99,990. The former will likely soon become eligible for IRA tax credits. Cybertruck orders and fast deliveries are open to everyone, suggesting that a large reservation list hasn't translated into massive actual orders.

4:35 p.m. ET

Tesla needs a big fourth quarter

With Tesla forecasting slight growth in vehicle deliveries in 2024 compared to 1.8 million in 2023, the electric vehicle giant needs far more than the record 484,507 deliveries in the fourth quarter of 2023. Analyst consensus currently suggests that, according to FactSet Deliveries will reach 487,000 in the fourth quarter and a total of 1.78 million deliveries in 2024.

As noted below, Tesla has increased incentives in recent days, with 0% financing and big inventory discounts on the Model 3 and Y in the US

4:27 p.m. ET

Cost of goods reach new low

Tesla reported that its cost of goods sold per vehicle hit an all-time low of $35,100. This was another important factor in increasing gross margin and profit.

4:24 p.m. ET

Advances in AI data centers

We have deployed a 29,000 H100 cluster at Gigafactory Texas and are training ahead of schedule – where we expect to have 50,000 H100 capacity by the end of October.

Tesla profit

The electric vehicle giant reported Wednesday that third-quarter profit rose 9% to 72 cents per share. Meanwhile, revenue totaled $25.18 billion, up 8% from the year-ago quarter. Analyst consensus forecast Tesla earnings per share of 59 cents and revenue of $25.47 billion. However, for some, sales were below this number.

Tesla reported that its overall gross margin was 19.8%, up 195 basis points from a year ago. Tesla Energy's gross margins reached a record 30.5%.

Tesla reported Wednesday that plans for new vehicles, including cheaper models, are on track to begin production in the first half of 2025.

Tesla added that the renewed Model 3 ramp-up continued successfully in the third quarter, with higher overall production and lower cost of goods sold compared to the previous quarter.

The company said Cybertruck production increased sequentially and achieved a positive gross margin for the first time. Preparations for the semi factory continue and remain on schedule. Construction is scheduled to begin at the end of 2025.

In early October, Tesla reported that third-quarter global deliveries rose 6% year-over-year, its third-best quarterly total ever. It was the electric giant's first return to vehicle sales growth in 2024, buoyed by strong performance in China. However, Tesla reported weaker vehicle sales in the US and Europe.

In particular, Tesla expects higher deliveries for the full year, which requires significant growth in the fourth quarter.

“Despite ongoing macroeconomic conditions, we expect vehicle deliveries to grow slightly in 2024,” Tesla said in its earnings release. “Energy storage deployment is expected to more than double year-over-year in 2024.”

In recent days, Tesla has announced 0 percent financing for Model 3 and Y purchases in the US, while inventory discounts are increasing significantly.

Tesla earnings call

Analysts and investors attend the Tesla earnings call looking for details on Full Self-Driving (FSD), details and information on the as-yet-unseen “affordable” vehicle, and comments on the long-awaited Model Y refresh .

Wedbush Securities analyst Dan Ives, a longtime Tesla bull, wrote on Monday that the focus will be on Chief Executive Officer Elon Musk's comments on the consumer demand environment for electric vehicles in the fourth quarter and next year.

Tesla stock performance

TSLA shares rose more than 7% in late trading after closing up 2% to 213.65 in Wednesday trading. Shares could retake the 50-day line on Thursday.

Tesla shares fell more than 18% in October, posting their worst weekly loss since April between October 7 and 7. 11. TSLA capped off the week with an 8.8% decline, falling well below its 50-day moving average on heavy volume.

The October 11 selloff followed the much-hyped Tesla robotaxi event.

Tesla Robotaxi Event: Cybercab and Robovan Revealed; Musk envisions autonomous driving “next year.”

According to MarketSurge charts, the stock has a cup with handle and a traditional buy point of 264.86. Shares have remained below the 50-day line in recent sessions.

Tesla stock ranks third in the 35-member IBD Auto Manufacturers industry group. The stock has a Composite Rating of 52 out of a best possible 99. The shares also have a Relative Strength Rating of 52 and an EPS Rating of 57.

Please follow Kit Norton on X @KitNorton for more coverage.

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