Islamabad, Oct 26: Tesla had a strong third quarter in 2024, bouncing back from a rough start to the year. The company increased its electric vehicle deliveries by 6% compared to last year, reversing a previous sales decline. However, growth in the automotive segment remained steady, with Tesla attributing its success to strong regulatory credit sales and reduced production costs
Automotive revenue only grew by 2%, reaching $20 billion, which was lower than the increase in deliveries. In contrast, Tesla’s energy division, including battery and solar operations, saw a significant 52% jump, generating $2.4 billion. Other revenue streams, such as services, grew by 29% to $2.8 billion compared to the third quarter of 2023.
One key factor in Tesla’s improved performance was a 6% reduction in operating expenses. Additionally, income from operations rose by 54%, totaling $2.7 billion. Tesla’s Supercharger network, mostly used by Tesla drivers, has contributed to income, strong part sales, and improved service center margins.
Selling emissions credits to other automakers was profitable, generating $739 million in the quarter. This, along with other revenue sources, helped increase Tesla’s total revenue by 8% year over year, bringing it to $25.2 billion. Gross profit rose by 20% to $5 billion, and net profit increased by 17% to $2.2 billion compared to the third quarter of 2023.
Tesla’s financial health improved, with free cash flow growing by 223% to $2.7 billion. The company’s total cash reserves, including cash equivalents and investments, increased by 29% to $33.6 billion, putting it in a strong position going forward.
