Tesla reported strong third-quarter earnings on Wednesday, surprising Wall Street. The company announced that it had produced 469,796 electric vehicles and 462,890 delivered, with the Model 3 and Model Y accounting for about 95% of deliveries.
In Q3 2024total revenue rose 8% year-over-year to $25.18 billion, while operating expenses fell 6% to $2.28 billion. Net income increased 17% compared to the same time last year, from $1.85 billion to $2.17 billion.
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“The industry was seeing year-over-year declines in order volumes in the third quarter,” CEO Elon Musk said on the call. “Tesla, at the same time, has achieved record deliveries … It's clear that Tesla is profitable despite a very challenging automotive environment, and this quarter is actually a record quarter for us.”
Tesla CEO Elon Musk. Photo by Patrick Pleul/photo alliance via Getty Images
Musk also revealed on the call that the company has been testing one robot taxi ride service in the Bay Area for its employees “for the better part of the year.”
Tesla employees in the Bay Area have had access to a ride-hailing service for months, he said, as the company tests self-driving features and seeks regulatory approval. A safety driver is currently present for rides.
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Tesla's goal is to shape the future of energy, robotics, transportation and AI “at a time when others are focused only on managing short-term trends,” Musk said. He said other companies “lack AI brains” when it comes to technology such as Tesla's Optimus robots.
Musk claimed that Tesla was on the right track.
“If we execute on our targets, which I think we will, my prediction is that Tesla will become the most valuable company in the world and probably for a long time,” Musk said.
Tesla is the 12th most valuable company in the world as of press time, with a market capitalization of $787.95 billion.
The company also announced that it produced its seven millionth car on Tuesday.