TLDR:
- Tesla reported Q3 2024 profits of $2.17 billion, up 17.3% year-over-year
- Revenue reached $25.18 billion, up 7.8% from last year
- Vehicle deliveries hit 462,890 units, marking 6.4% quarterly growth
- Gross margin improved to 19.8%, exceeding expectations of 16.8%
- New affordable EV models confirmed for production in first half of 2025
Tesla reported stronger-than-expected third-quarter results for 2024, marking a significant turnaround with its first year-over-year quarterly profit increase of the year.
The electric vehicle manufacturer posted a net income of $2.17 billion, representing a 17.3% increase from the same period last year.
The company’s revenue grew to $25.18 billion, showing a 7.8% improvement compared to the previous year, though slightly missing analysts’ expectations of $25.47 billion. Vehicle deliveries reached 462,890 units during the quarter, up 6.4% from the previous quarter and marking the first delivery growth of 2024.
A key highlight of the earnings report was the improvement in gross margins, which reached 19.8%, significantly exceeding market expectations of 16.8%. This improvement came despite ongoing price adjustments and financing incentives implemented to drive sales.
Tesla’s cost-reduction efforts showed notable progress, with the company achieving its lowest cost of goods per vehicle at approximately $35,100. This efficiency gain helped boost the company’s operating margin to 10.8%, up from 7.6% a year ago.

The Energy Generation and Storage division posted impressive results, achieving a record gross margin of 30.5%. Tesla expects this business segment to more than double in size year-over-year in 2024.
In the earnings release, Tesla confirmed its plans to begin production of new vehicles, including more affordable models, in the first half of 2025. While specific details about the new vehicles weren’t disclosed, the company indicated they would utilize parts from current models and be manufactured on existing assembly lines.
The company’s regulatory credit revenue reached $739 million during the quarter, marking the second-highest quarter in Tesla’s history for this revenue stream.
Despite facing what Tesla described as “ongoing macroeconomic conditions,” particularly high interest rates, the company maintained its guidance for slight growth in vehicle deliveries for the full year 2024.
Tesla’s shares responded positively to the earnings report, jumping approximately 9% in after-hours trading. This helped offset some of the recent stock decline following the company’s Cybercab robotaxi unveiling earlier in the month.
The Cybertruck production showed promising developments, with Tesla reporting increased production volumes and achieving a positive gross margin for the first time.
The refreshed Model 3 also contributed to the quarter’s success, with higher production volumes and lower costs of goods sold compared to the previous quarter.
Looking ahead, Tesla remains focused on expanding its vehicle lineup while continuing to reduce costs. The company’s strategy involves making strategic investments in artificial intelligence projects and production capacity.
Tesla’s Energy business appears poised for significant growth, with the company projecting more than double year-over-year growth in 2024 for this segment.
The company’s regulatory credit sales continue to provide a substantial revenue stream, contributing $739 million to the quarter’s results.
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