• Operating Cash Flow: Record $6.3 billion in Q3.

• Automotive Revenue: Growth both quarter-on-quarter and year-on-year.

• FSD Revenue: $326 million from Cybertruck and other features.

• Regulatory Credits Revenue: Over $2 billion year-to-date.

• Automotive Margins: Improved quarter-over-quarter.

• Energy Margins: Record at more than 30% in Q3.

• Operating Expenses: Declined quarter-over-quarter and year-on-year.

• CapEx: $3.5 billion in Q3, with full-year expectation over $11 billion.

• Warning! GuruFocus has detected 4 Warning Sign with TSLA.

Release Date: October 23, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Tesla Inc (NASDAQ:TSLA) achieved record deliveries in Q3 2024, despite a challenging automotive environment.

• The energy storage business is experiencing strong demand, with the Lathrop Megapack factory reaching a 40 gigawatt-hour annual run rate.

• Tesla's internal 4680 battery cell is approaching cost competitiveness, potentially becoming the most competitive cell in North America.

• Significant improvements in Full Self-Driving (FSD) technology, with expectations of a five to six-fold improvement in miles between interventions.

• Tesla's AI and robotics advancements, including humanoid robots and autonomous vehicles, are progressing rapidly, with plans to roll out ride-hailing services in California and Texas next year.

Negative Points

• Tesla Inc (NASDAQ:TSLA) faces challenges in sustaining automotive margins due to economic conditions and financing incentives.

• The rollout of autonomous vehicles is contingent upon regulatory approvals, particularly in states like California.

• There is uncertainty regarding the capability of Hardware 3 to achieve unsupervised FSD, which may require upgrades.

• Tesla's focus on autonomy and high-tech features may lead to longer wait times at service centers, despite efforts to improve service efficiency.

• The development of the Tesla Roadster has been delayed, as the company prioritizes projects with a more significant impact on sustainable energy.

Q & A Highlights

Q: Is Tesla still on track to deliver the more affordable model next year, and how does it align with your AI and product roadmap? A: Lars Moravy, Vice President of Vehicle Engineering, confirmed that Tesla is on plan to meet the delivery of the more affordable model in the first half of next year. The ambition is to lower vehicle costs to increase the adoption of sustainable energy and transport. This aligns with the AI roadmap as Tesla brings in robotaxis, which lowers the initial cost of getting into an EV.