Tesla's Q3 earnings report is out: solid profits, but lower-than-expected revenues

Tesla's third-quarter earnings report is out, showing revenue was slightly short of expectations, but profitability was great.

Tesla raked in $25.18 billion, compared to the anticipated $25.4 billion, but it made $2.17 billion in net profit, significantly above the analysts' consensus. The record gross margin of 19.8% was the most significant contributor.

Tesla's vehicle deliveries in Q3 were also positive. The company delivered 462,890 vehicles, marking the first quarter of delivery growth this year and exceeding the 435,059 EVs delivered in the same period last year. Although admitedly, they are slightly below Wall Street's forecast of 463,897 deliveries.

Not all news was rosy. Tesla's recent "We, Robot" event, which revealed the company's robotaxi ambitions, left investors wanting more concrete details. While CEO Elon Musk confirmed that the Cybercab will reach volume production in 2026, with an ambitious goal of 2 million units per year, questions remain about the development and testing plans for this autonomous vehicle.

Despite the mixed signals, Tesla remains optimistic about its future. The company expects "slight growth" in vehicle deliveries for 2024, with Musk hinting at a possible 20-30% increase. Additionally, Tesla's Energy Generation and Storage business is showing strong performance, with a record gross margin of 30.5% in Q3 and expectations to more than double year over year in 2024.

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