Tesla Financial Report Unveiled: Steady Growth with Leapfrogging Autonomous Driving Technology
At the tail end of the golden autumn in October, Tesla released its third-quarter financial report, showcasing a series of impressive figures that not only highlight the company's steady growth amidst adversity but also lay a solid foundation for its future development.
Steady Growth in Total Revenue and Net Profit
Tesla's total revenue in the third quarter reached US$25.182 billion, an increase of 8% year-on-year. This achievement is particularly valuable against the backdrop of increasing global economic uncertainty. In terms of net profit, Tesla achieved a net profit of US$2.167 billion, also an increase of 8% year-on-year, demonstrating the company's excellent profitability and cost control level.
Gross Margin Hits All-Time High
Particularly noteworthy is that Tesla's gross margin for this quarter reached 19.8%, setting an all-time record. Among all businesses, the energy business boasted the highest profit margin, benefiting from Tesla's continuous layout and technological innovations in the field of energy storage.
Significant Increase in Free Cash Flow
Free cash flow is one of the key indicators measuring a company's financial health. Tesla's free cash flow for the third quarter was $2.742 billion, representing a substantial year-on-year increase of 223%. This figure indicates that Tesla has effectively improved its capital utilization efficiency while maintaining business expansion.
Tesla's cash, cash equivalents, and investments amounted to $33.648 billion, up 29% year-on-year. Adequate cash reserves provide Tesla with a solid financial cushion to respond to market changes, drive technological innovation, and expand production capacity in the future.
Capacity and Sales Reach New Heights
At the Fremont factory, Tesla celebrated the rollout of its 7-millionth vehicle, a milestone achievement that not only confirms Tesla's production capabilities but also reflects the company's expanding global market share.
Sales Cost Drops to an All-Time Low
Tesla has reduced the sales cost per vehicle to an all-time low of approximately $35,100. This achievement is attributed to Tesla's continuous optimization in supply chain management, production efficiency, and cost control, laying a solid foundation for making its products affordable.
Affordable Model Soon to Be Released
Tesla anticipates that its affordable model will commence production in the first half of 2025. This news will undoubtedly further enhance Tesla's competitiveness in the global market, particularly in emerging markets, potentially attracting more consumers to join the Tesla family.
Dual Momentum from Cybertruck and Semi
Tesla Cybertruck production has been consecutively increasing, achieving a positive gross margin for the first time, indicating the market's high recognition of this futuristic pickup truck. Meanwhile, preparations for the Semi factory are in full swing, with initial construction expected to commence next year and full-scale production in 2026. Musk noted that considering the extremely low cost per mile of the Semi, the market demand for it is enormous. Currently, all deployed Tesla Semi trucks, approximately 200 units, are equipped with the necessary hardware for Full Self-Driving (FSD). Musk pointed out that FSD will be a significant advancement in truck safety.
Continuous Upgrades of FSD Beta
In the third quarter, Tesla released FSD Beta V12.5, which saw significant improvements in safety and comfort due to a substantial increase in parameters, data, and training compute. Additionally, Tesla introduced True Smart Summon functionality and launched FSD Beta for Cybertruck, achieving a breakthrough in end-to-end highway driving.
Energy Storage Business and Global Layout
The Gigafactory Texas showcased a production capacity of 200 Megapacks per week (operating rate of 40GWh). Musk stated that Tesla will soon deliver 100GWh of stationary energy storage systems and plans to scale up to several TWh annually. The deployment of Powerwalls also hit a new high for the second consecutive quarter, with over 100,000 Powerwalls joining the Virtual Power Plant program by the end of the third quarter.
Accelerated Globalization Strategy
The Shanghai Gigafactory has not only produced its 3-millionth vehicle but also exported its 1-millionth, marking it as a crucial pillar in Tesla's globalization strategy. Additionally, the Model Y has become the top-selling model in markets such as Sweden, the Netherlands, Denmark, and Switzerland in 2024, further consolidating Tesla's position in the global market.
Future Outlook and Challenges
Musk stated that, barring any force majeure events, Tesla's deliveries will increase by 20% to 30% next year. This forecast not only reflects Tesla's confidence in market demand but also demonstrates the company's robust capabilities in capacity expansion and supply chain management.
Musk revealed that compared to FSD V12.5, FSD V13 will have an intervention interval mileage increased by 5 to 6 times, and it is internally estimated that by the second quarter of 2025, FSD will be safer than humans. Tesla's FSD has logged over 2 billion miles, providing valuable data support for the further optimization and popularization of autonomous driving technology.
Cybercab and Robotaxi Services
Musk is confident that Cybercab will achieve mass production in 2026, with plans to produce at least 2 million units annually. Meanwhile, Tesla's Robotaxi ride-hailing service will be open to the public in Texas and California next year, marking an important step in Tesla's commercialization of autonomous taxi services.
Addressing the issue that HW3 vehicles may not meet the safety level required for unsupervised FSD, Musk stated that Tesla will replace Hardware 3 with Hardware 4 free of charge, at least for users who have purchased FSD. Additionally, Tesla's AI training is not limited by computing, providing strong technical support for its continuous innovation in autonomous driving.
Conclusion
Tesla's impressive third-quarter financial results are not only a testament to the company's past efforts but also a strong support for its future development. From the continuous growth in production and sales, to the continuous innovation in renewable energy and autonomous driving technologies, and the accelerated globalization strategy, Tesla is leading the transformation of the global automotive industry with its unique charm and powerful strength. We have reason to believe that in the future, Tesla will continue to write its own glorious chapter.