Tesla’s Q3 buoyed by credits, cost-cutting as auto revenue stays flat
Tesla's profit margin is looking healthier than it has in a while.
After a rocky first half of the year, Tesla enjoyed a much healthier third quarter in 2024. As we learned earlier this month, it arrested a slide in sales, delivering 6 percent more electric vehicles year over year. But the automotive side of the business was essentially flat—Tesla attributes its success to its second-best quarter ever for regulatory credits, as well as making it cheaper to build the cars it sells.
Automotive revenues grew by 2 percent to $20 billion for the third quarter, less than the growth in deliveries. But Tesla's static battery and solar operations grew by 52 percent year over year, bringing in $2.4 billion. Services and other revenue-generating activities brought in another $2.8 billion, growing 29 percent compared to Q3 2023.
Cutting operating expenses by 6 percent helped a lot, as did increasing income from operations, up 54 percent to $2.7 billion. Some of that income has come from the Supercharger network, though it's still mostly from Tesla drivers—so far, only a few of the OEMs that have announced a switch to the Tesla-style NACS plug have gained access to Tesla's chargers. But Tesla says part sales have been strong, and its increased its margins at its service centers.
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