Tesla Reassures Investors with Strong EV Growth Forecast and AI Pivot

Tesla allays investor fears with crucial EV growth forecast, shares jump 16%

Tesla's stock surged over 16% after CEO Elon Musk reassured investors about expected sales growth and plans to cut production costs. The company announced its pivot toward AI and robotics, with new projects like the Cybercab robotaxi, despite regulatory challenges and investor concerns over Musk's focus.Tesla's stock jumped more than 16% on Thursday, a day after it forecast surging car sales growth, reassuring investors that CEO Elon Musk was still looking to expand the core business of selling electric vehicles. The world's the most valuable automaker was set to add around $110 billion to its market capitalization if the gains hold, making up for a recent erosion on concerns that Musk was distracted by new projects like the recently unveiled robotaxi. Musk has been pivoting Tesla into an artificial intelligence and robotics company from an EV market leader, but has yet failed to lay out a detailed business plan for his new focus. Last quarter, he made bold company announcements about everything but cars - from driverless taxis to humanoid robots - leaving investors worried about dwindling margins already squeezed by lowered prices. On a post-earnings call on Wednesday, though, Musk forecast 20%-30% sales growth next year, promising an affordable vehicle, and said efforts to slash production costs boosted margins. "He definitely seemed more passionate and invested in it this time," said Jessica Caldwell, head of insights at car research and buying website Edmunds. "I feel like so much of Tesla is tied up in the future but we need to figure out how you get there. That's what people needed to hear and they were a little bit better in providing those details than they have been in the past." The results followed a flashy event this month to unveil a two-seater robotaxi dubbed Cybercab that will go into production in 2026 without a steering wheel or pedals and cost less than $30,000 to buy. The event also featured a 20-seater driverless van and humanoid robots that danced for attendees. Disappointed by the lack of some key details on how quickly Tesla could ramp up robotaxi production and clear inevitable regulatory hurdles, investors punished the company's stock after that event. Musk on Wednesday said Tesla aims to produce at least 2 million Cybercabs a year. "FSD played a part in the margin expansion, but I think the larger driver was reduced unit production costs... Over time, FSD should drive higher long-term margin expansion," said Seth Goldstein, equity strategist at Morningstar. Tesla posted $326 million in revenue for FSD used in Cybertruck and some features like Actually Smart Summon in the third quarter. Not all investors are likely to be mollified by Tesla's reassurances on Wednesday. Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management and a prominent Tesla investor, said robotaxis and AI were not the fundamental businesses he wanted Musk to focus on. "The days were good when Elon slept at the factory. He was there every day, working. Not going on Trump rallies of all things he could be doing," Gerber said, referring to Musk's well-publicized support of the Republican presidential candidate. Gerber made a short-lived run for the Tesla board last year. Tesla shares are trading at 72.75 times its 12-month forward earnings estimates, much higher than the 5.94 times for legacy automaker Ford Motor and 30.79 for technology giant Microsoft. At least five brokerages raised their price target on the stock, with a median PT of $221, according to LSEG data. ROBOTAXI REGULATORY HURDLES Musk on Thursday said he expects Tesla vehicles to offer paid, driverless, ride-hailing services next year, doubling down on his promise made at the robotaxi event. He said the company was already testing the operations with its employees in the San Francisco Bay Area. But that plan is likely to face significant regulatory challenges. Musk himself acknowledged on Wednesday the potential difficulties in getting approvals in California, saying "it's not something we totally control," but adding "I would be shocked if we don't get approval next year." For now, encouraging fundamentals of the core EV business are likely to keep the heat off Musk. Until next quarter. "Capturing sales in today's challenging market and streamlining operations aren't as sexy as self-driving cabs and dancing robots," Edmunds' Caldwell said. "But they're critical toward funding the company's long-term vision for the future."

Tesla allays investor fears with crucial EV growth forecast, shares jump

SAN FRANCISCO (Reuters) - Tesla stock shot up nearly 12% in pre-market trade on Thursday, a day after it forecast surging car sales growth, reassuring investors that CEO Elon Musk was still looking to expand the company's core business of selling electric vehicles. The stock jump set the company up to add around $80 billion to its market capitalization, making up for a recent erosion in value caused by concerns that Musk was distracted by new projects like the recently unveiled robotaxi, which he has said will drive future growth. Musk has been pivoting Tesla into an artificial intelligence and robotics company from an EV market leader, but has yet failed to lay out a detailed business plan for his new focus. Last quarter, he made bold company announcements about everything but cars - from driverless taxis to humanoid robots - leaving investors worried about dwindling margins already squeezed by lowered prices. On a post-earnings call on Wednesday, though, Musk forecast 20% to 30% sales growth next year, promising an affordable vehicle, and said efforts to slash production costs boosted margin. "He definitely seemed more passionate and invested in it this time," said Jessica Caldwell, head of insights at car research and buying website Edmunds. "I feel like so much of Tesla is tied up in the future but we need to figure out how you get there. That's what people needed to hear and they were a little bit better in providing those details than they have been in the past." The results followed a flashy event this month to unveil a two-seater robotaxi dubbed Cybercab that will go into production in 2026 without a steering wheel or pedals and cost less than $30,000 to buy. The event also featured a 20-seater driverless van and humanoid robots that danced for attendees. Disappointed by the lack of some key details on how quickly Tesla could ramp up robotaxi production and clear inevitable regulatory hurdles, investors punished the company's stock after that event. Musk on Wednesday said Tesla aims to produce at least 2 million Cybercabs a year. Not all investors are likely to be mollified by Tesla's reassurances on Wednesday. Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management and a prominent Tesla investor, said robotaxis and AI were not the fundamental businesses he wanted Musk to focus on. "The days were good when Elon slept at the factory. He was there every day, working. Not going on Trump rallies of all things he could be doing," Gerber said, referring to Musk's well-publicized support of the Republican presidential candidate. Gerber made a short-lived run for the Tesla board last year. Musk on Thursday said he expects Tesla vehicles to offer paid, driverless, ride-hailing services next year, doubling down on his promise made at the robotaxi event. He said the company was already testing the operations with its employees in the San Francisco Bay Area. But that plan is likely to face significant regulatory challenges. Musk himself acknowledged on Wednesday the potential difficulties in getting approvals in California, saying "it's not something we totally control," but adding "I would be shocked if we don't get approval next year." For now, encouraging fundamentals of the core EV business is likely to keep the heat off Musk. Until next quarter. "Capturing sales in today's challenging market and streamlining operations aren't as sexy as self-driving cabs and dancing robots," Edmunds' Caldwell said. "But they're critical toward funding the company's long-term vision for the future." (Reporting by Abhirup Roy in San Francisco; Editing by Sayantani Ghosh, Sam Holmes and Rashmi Aich)

Tesla allays investor fears with crucial EV growth forecast, shares jump

SAN FRANCISCO, Oct 24 (Reuters) - Tesla (TSLA.O), opens new tab stock shot up nearly 12% in pre-market trade on Thursday, a day after it forecast surging car sales growth, reassuring investors that CEO Elon Musk was still looking to expand the company's core business of selling electric vehicles. The stock jump set the company up to add around $80 billion to its market capitalization, making up for a recent erosion in value caused by concerns that Musk was distracted by new projects like the recently unveiled robotaxi, which he has said will drive future growth. Advertisement · Scroll to continue Musk has been pivoting Tesla into an artificial intelligence and robotics company from an EV market leader, but has yet failed to lay out a detailed business plan for his new focus. Last quarter, he made bold company announcements about everything but cars - from driverless taxis to humanoid robots - leaving investors worried about dwindling margins already squeezed by lowered prices. On a post-earnings call on Wednesday, though, Musk forecast 20% to 30% sales growth next year, promising an affordable vehicle, and said efforts to slash production costs boosted margin. Advertisement · Scroll to continue "He definitely seemed more passionate and invested in it this time," said Jessica Caldwell, head of insights at car research and buying website Edmunds. "I feel like so much of Tesla is tied up in the future but we need to figure out how you get there. That's what people needed to hear and they were a little bit better in providing those details than they have been in the past." The results followed a flashy event this month to unveil a two-seater robotaxi dubbed Cybercab that will go into production in 2026 without a steering wheel or pedals and cost less than $30,000 to buy. The event also featured a 20-seater driverless van and humanoid robots that danced for attendees. Disappointed by the lack of some key details on how quickly Tesla could ramp up robotaxi production and clear inevitable regulatory hurdles, investors punished the company's stock after that event. Musk on Wednesday said Tesla aims to produce at least 2 million Cybercabs a year. Not all investors are likely to be mollified by Tesla's reassurances on Wednesday. Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management and a prominent Tesla investor, said robotaxis and AI were not the fundamental businesses he wanted Musk to focus on. "The days were good when Elon slept at the factory. He was there every day, working. Not going on Trump rallies of all things he could be doing," Gerber said, referring to Musk's well-publicized support of the Republican presidential candidate. Gerber made a short-lived run for the Tesla board last year. Musk on Thursday said he expects Tesla vehicles to offer paid, driverless, ride-hailing services next year, doubling down on his promise made at the robotaxi event. He said the company was already testing the operations with its employees in the San Francisco Bay Area. But that plan is likely to face significant regulatory challenges. Musk himself acknowledged on Wednesday the potential difficulties in getting approvals in California, saying "it's not something we totally control," but adding "I would be shocked if we don't get approval next year." For now, encouraging fundamentals of the core EV business is likely to keep the heat off Musk. Until next quarter. "Capturing sales in today's challenging market and streamlining operations aren't as sexy as self-driving cabs and dancing robots," Edmunds' Caldwell said. "But they're critical toward funding the company's long-term vision for the future." Reporting by Abhirup Roy in San Francisco; Editing by Sayantani Ghosh, Sam Holmes and Rashmi Aich Our Standards: The Thomson Reuters Trust Principles., opens new tab

Tesla Allays Investor Fears With Crucial EV Growth Forecast, Shares Jump

SAN FRANCISCO (Reuters) - Tesla stock shot up nearly 12% in pre-market trade on Thursday, a day after it forecast surging car sales growth, reassuring investors that CEO Elon Musk was still looking to expand the company's core business of selling electric vehicles. The stock jump set the company up to add around $80 billion to its market capitalization, making up for a recent erosion in value caused by concerns that Musk was distracted by new projects like the recently unveiled robotaxi, which he has said will drive future growth. Musk has been pivoting Tesla into an artificial intelligence and robotics company from an EV market leader, but has yet failed to lay out a detailed business plan for his new focus. Last quarter, he made bold company announcements about everything but cars - from driverless taxis to humanoid robots - leaving investors worried about dwindling margins already squeezed by lowered prices. On a post-earnings call on Wednesday, though, Musk forecast 20% to 30% sales growth next year, promising an affordable vehicle, and said efforts to slash production costs boosted margin. "He definitely seemed more passionate and invested in it this time," said Jessica Caldwell, head of insights at car research and buying website Edmunds. "I feel like so much of Tesla is tied up in the future but we need to figure out how you get there. That's what people needed to hear and they were a little bit better in providing those details than they have been in the past." The results followed a flashy event this month to unveil a two-seater robotaxi dubbed Cybercab that will go into production in 2026 without a steering wheel or pedals and cost less than $30,000 to buy. The event also featured a 20-seater driverless van and humanoid robots that danced for attendees. Disappointed by the lack of some key details on how quickly Tesla could ramp up robotaxi production and clear inevitable regulatory hurdles, investors punished the company's stock after that event. Musk on Wednesday said Tesla aims to produce at least 2 million Cybercabs a year. Not all investors are likely to be mollified by Tesla's reassurances on Wednesday. Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management and a prominent Tesla investor, said robotaxis and AI were not the fundamental businesses he wanted Musk to focus on. "The days were good when Elon slept at the factory. He was there every day, working. Not going on Trump rallies of all things he could be doing," Gerber said, referring to Musk's well-publicized support of the Republican presidential candidate. Gerber made a short-lived run for the Tesla board last year. Musk on Thursday said he expects Tesla vehicles to offer paid, driverless, ride-hailing services next year, doubling down on his promise made at the robotaxi event. He said the company was already testing the operations with its employees in the San Francisco Bay Area. But that plan is likely to face significant regulatory challenges. Musk himself acknowledged on Wednesday the potential difficulties in getting approvals in California, saying "it's not something we totally control," but adding "I would be shocked if we don't get approval next year." For now, encouraging fundamentals of the core EV business is likely to keep the heat off Musk. Until next quarter. "Capturing sales in today's challenging market and streamlining operations aren't as sexy as self-driving cabs and dancing robots," Edmunds' Caldwell said. "But they're critical toward funding the company's long-term vision for the future." (Reporting by Abhirup Roy in San Francisco; Editing by Sayantani Ghosh, Sam Holmes and Rashmi Aich)

Tesla surprises with sales forecast and cost efficiency, shares jump

Tesla CEO Elon Musk expects vehicle sales to grow 20% to 30% next year, reassuring investors about the company's profitability in selling electric vehicles. Musk also mentioned plans to roll out driverless vehicles offering paid rides next year in California and Texas after regulatory approval. Tesla aims to expand its vehicle lineup by 2025.Tesla CEO Elon Musk said he expects vehicle sales to grow 20% to 30% next year, reassuring investors the company was improving its core business of selling electric vehicles profitably, and reducing concerns about when it could produce a robotaxi. The forecast, building on a target for "slight growth" in deliveries this year, pushed the company's shares up 12% in post-market trading on Wednesday. This set up Tesla to add about $80 billion in stock market value. A drop in the cost of making vehicles added comfort for investors who saw Musk focusing on boosting Tesla's industry-leading margin, even as he talked about a future dominated by autonomous cars. Tesla's long-awaited unveiling of its robotaxi on Oct. 10 failed to impress investors. "No EV company is even profitable," Musk told analysts on a conference call on Wednesday. "And to the best of my knowledge, there was no EV division of any company, of any existing auto company that is profitable. So it is notable that Tesla is profitable despite a very challenging automotive environment." Shares of Tesla's smaller EV rivals Rivian and Lucid both rose 2% after-hours. Musk said Tesla would roll out driverless vehicles offering paid rides next year, after the company received regulatory approval in California and Texas. He said adoption - and sales - of the company's supervised autopilot software, known as Full Self-Driving, increased substantially after the robotaxi event. Tesla this month again offered FSD free for a month to its current customers, for the second time this year. The company said in a statement earlier it remained focused on expanding its vehicle lineup, cutting costs and making critical investments in AI projects and production capacity, despite uncertain demand and rivals pulling back on EV investments. "Preparations remain underway for our offering of new vehicles - including more affordable models - which we will begin launching in the first half of 2025," it said. Tesla's third-quarter profit margin from vehicle sales, excluding regulatory credits, grew to 17.05% from 14.6% in the prior three-month period, according to Reuters calculations. Wall Street had expected 14.9%, according to 24 analysts polled by Visible Alpha. But Tesla's finance boss, Vaibhav Taneja, said it would be "challenging" to sustain these margins in the fourth quarter ending December. The EV giant said that the labor and material costs of making vehicles, known as the cost of goods sold per vehicle, dropped to its lowest-ever level, about $35,100. Adjusted profit of 72 cents per share in the third quarter beat an average estimate of 58 cents. Prices of raw materials used to make EV batteries have been falling and Tesla has said its costs will decline as a result this year, with the effect diminishing over time. Taneja forecast more than $11 billion in capital expenses for next year. "The improving numbers across the board signal the company may have finally found a nice sweet spot for the pricing-versus-production-costs equation," said Thomas Monteiro, senior analyst at Investing.com. "The report also diminishes the urgency for a cheaper model." After slashing prices last year, Tesla started offering lucrative financing options this spring to boost demand. It has already delivered 1.29 million vehicles in the first nine months of this year. It needs to hand over another 514,925 vehicles to beat last year's record. "The fear going into results was that the huge incentives effort to push volumes into the tough EV market would materially dent margins - that doesn't look the be the case," said Matt Britzman, a senior equity analyst at Hargreaves Lansdown who also personally owns Tesla shares. Revenue for the July-September quarter was $25.18 billion, compared with estimates of $25.37 billion, according to data compiled by LSEG. It reported sales of $23.35 billion in the corresponding quarter of 2023. Tesla said it recognized its second-highest quarter of regulatory credit revenue. This metric was up 33% year-over-year to $739 million, but down from $890 million in the second quarter.

Tesla stock extends post-robotaxi event slide with Q3 earnings on deck

Tesla shares moved lower in early Tuesday trading, extending their monthly decline to around 13%, as investors look to the EV maker's third quarter earnings to arrest a slide triggered in part by a disappointing robotaxi launch event. Tesla (TSLA) has lost more than $540 billion in market value since its November 2021 peak as the automaker spiraled into a global EV price war that eroded its commanding market share and ate into its profit margins. But the stock has rebounded firmly from its early April lows as CEO Elon Musk signaled a major shift in focus for his signature company, which he said would center on artificial intelligence technologies that power robotics, self-driving cars and its nascent energy storage business. Some of that momentum has stalled, however, following Tesla's highly-anticipated robotaxi reveal event earlier this month in Los Angeles that was replete with ambitious projects and targets but short on details as to how to achieve them. "We were disappointed by the lack of detail regarding Tesla's near-term product road map, e.g., the more affordable model and Roadster, both of which Musk said would achieve first production in 2025 on its last conference call," said CFRA analyst Angelo Zino. "We think the event did little to change an opaque intermediate-term earnings outlook." That likely puts this week's third quarter earnings, slated for after the close of trading on Wednesday, in unusually sharp focus as investors look to the group's legacy carmaking business to steady the ship as it moves toward the autonomous future that Musk has promised for so many years. Delivery targets in focus Analysts expect the group to post a bottom line of 58 cents per share, down 12.1% from the same period last year, with revenues rising 8.65% to $25.37 billion. Tesla, which earlier this year cautioned the 2024 deliveries would be "significantly lower" that 2023 levels, shifted around 463,000 vehicles over the three months ending in September, a 6.4% increase from last year that snapped a streak of two consecutive quarterly declines. Despite Tesla's earlier warnings, Musk has said the group can top last year's record 1.8 million delivery tally, but that would require a blowout fourth quarter performance of more than half a million - and likely further price cuts or incentives. "Looking to the rest of the year with the anticipated rebound in delivery performance to the rest of the year, we remain confident in Tesla's ability to hit 1.8 million deliveries for FY24 which we will view as a solid feat given the extensive white-knuckle moments seen throughout the first half of the year," said Wedbush analyst Dan Ives, who carries a $300 price target and an 'outperform' rating on Tesla stock. Related: Tesla faces probe after fatal 'Full Self Driving' collision "While autonomous, FSD, and robotics is the future for Tesla, deliveries in the near-term will drive the stock and the Street will be laser focused on 3Q showing a margin/demand inflection point in the Tesla story heading into 2025," he added. The impact on profit margins could also be notable, given the $12,000 cost in addition to a Tesla's average selling price of $45,000. Musk has also said that Tesla is in discussions to license the technology to a "major" original-equipment manufacturer and is "very open to licensing our full self-driving software and hardware to other car companies." Margin growth key Gordon Johnson of GLJ Research, however, thinks that Tesla's aggressive financing options, known as rate buydowns, and fewer Zero Emission Vehicle ZEV credits will lead to a "significant Q3 adjusted earnings miss" for the group as well as the chance for negative free cash flow. Profit margins will also be in focus, given the group's near-term reliance on vehicle delivers as its maps out its autonomous future. Gross margins are forecast to fall by around 600 basis points, or 0.6%, to 17.3% for the third quarter. "Margins will be a key focus on the conference call as the Street want to see a leveling off for Auto GM (ex credits) and track back heading towards the ~20% threshold level for 2025," Ives said. "We need to start seeing this key metric head into the high teens for 3Q/4Q to give the Street comfort much of the price cuts are in the rearview mirror showing better margin days are ahead for 2025." Related: Tesla's "We Robot" event fails to impress analysts, while they praise Ferrari, mull Rivian Musk will likely speak to investors on the post-earnings call, an is expected to face questions regarding some of this bolder promises from the robotaxi event, which included a prediction that all Tesla vehicles in Texas and California will be able to operate without driver supervision as early as next year. He also posted on his verified X social media account that, pending final regulatory approval, Tesla's full self-driving advanced driver-assistance software will be available in Europe and China next year. He may also address market speculation that Tesla has dumped plans to build a low-priced EV sedan on its current production platform, a development that could have big implications for its sales volumes over the coming years. More Tesla: The overarching narrative, however, will likely focus on Musk's AI-powered ambitions, and the timeframe the group will need to bring its self-driving vehicles to market while launching and expanding its robotaxi fleet. "My long-standing optimism about Tesla's opportunity has been tested by the painful reality that this is taking much longer than I anticipated," said Deeptwater Asset Management analyst Gene Munster, a longtime Tesla bull. "Patience has become a core value for investing in Tesla," he added. "The bad news is when it comes to autonomy, this is likely going to take longer than I would have thought a month ago." Tesla shares were marked 0.65% lower in premarket trading to indicate an opening bell price of $217.43 each, a move that would leave the stock down around 12% for the year. Related: Veteran fund manager sees world of pain coming for stocks

Telsa shares jump in third quarter earnings even as expected revenue is lower

After two slow quarters, Elon Musk's electric vehicle maker reported a higher-than-expected earnings a share Tesla shares saw an 8% jump after reporting its third quarter earnings on Wednesday. The electric car manufacturer was able to bounce back from a tough second quarter, beating Wall Street expectations for earnings per share. The company reported an earnings-per-share of $0.72, surpassing investors' projection of $0.60. At the end of the second quarter, Tesla's chief executive, Elon Musk, said the nearly 50% drop in profits was temporary and due to difficulty competing with cheaper or price-slashed electric vehicles by rival companies such as BYD. "We don't see this as a long-term issue," Musk said in July, "but really fairly short term." Tesla came slightly under expected revenue, however. The company reported $25.18bn in revenue at the end of the third quarter, just missing Wall Street revenue projections of $25.43bn. "Despite sustained macroeconomic headwinds and others pulling back on EV investments, we remain focused on expanding our vehicle and energy product lineup, reducing costs and making critical investments in AI projects and production capacity," the company said in a press release. "We believe these efforts will allow us to capitalize on the ongoing transition in the transportation and energy sectors." Tesla delivered 462,890 vehicles at the end of the third quarter, up from 443,956 in the second quarter. Investors will be looking to hear more about whether the company is on track to match its 2023 vehicle deliveries of 1.8m. The company said that it expected slight growth in vehicle deliveries by the end of the year. Dan Ives, of financial services firm Wedbush Securities, remains confident. Meeting that goal will be "a solid feat given the extensive white-knuckle moments seen throughout the first half of the year", he said in a note to investors. Investors will also be looking for more information about the company's robotaxis following a disappointing launch event. After unveiling the company's much-hyped robotaxi earlier this month with scant details, Tesla shares dropped by just under 9% and wiped more than $60bn from the company's value. At the time, Tom Narayan, an analyst at the Royal Bank of Canada, said in a note to investors that the event was more focused on branding and marketing Musk's vision "rather than giving concrete numbers for us to model out" as is expected at these events. Musk may also have to answer for his recent focus on politics. In addition to starting the America Pac, the X chief executive has been on the campaign trail on behalf of Donald Trump and has started a $1m daily sweepstakes for swing state voters who sign his petition. The giveaway has brought up legal questions, sparking calls for law enforcement to investigate Musk and the practice from people such as the Pennsylvania governor, Josh Shapiro. It is a federal crime to try to pay people to vote or register to vote. Musk is facing legal scrutiny elsewhere as well. The EU is considering fining X based on total sales by SpaceX, Neuralink, xAI and the Boring Company. The bloc alleges the social media company failed to address illegal content and disinformation on its platform. Fines can be as much as 6% of the yearly revenue of a company. Tesla will likely be exempt from that fine, however, as it's a public company and not wholly owned by Musk.

Tesla shares jump as profit tops Wall Street expectations

Tesla's quarterly profit beat analysts' estimates and it forecast a "slight growth" in deliveries this year, pushing the stock of the world's largest electric vehicle maker more than 8 per cent higher in after-hours trading. Adjusted net income for the quarter rose 8 per cent from a year ago to $2.5bn, exceeding expectations for $2.1bn, according to a filing from the Austin, Texas-based company on Wednesday. Revenue rose 8 per cent to $25.2bn, slightly undershooting the average $25.4bn estimate. "Despite ongoing macroeconomic conditions, we expect to achieve slight growth in vehicle deliveries in 2024," Tesla said. "Plans for new vehicles, including more affordable models, remain on track for start of production in the first half of 2025." Earlier this month, Tesla reported that deliveries rose 6.4 per cent in the third quarter to 462,890 vehicles globally, driven by a surge in Chinese sales that offset weak demand in Europe. While the company retained its position as the top electric vehicle maker ahead of China's BYD, the figures fell slightly short of analysts' expectations. Chief executive Elon Musk has made a strategic pivot towards autonomous driving, artificial intelligence and robotics, telling investors that these technologies would soon be Tesla's main revenue sources and drive up its valuation. However, the company still makes four-fifths of its revenue from selling cars and has not released a new mass consumer vehicle since 2020.

Tesla stock leaps on solid Q3 earnings, delivery growth outlook

Tesla posted stronger-than-expected third quarter earnings Wednesday, and said it expects to grow overall vehicle deliveries this year, as investors look for guidance on the groups AI and full-self driving ambitions and the near-term future of its recent robotaxi launch. Tesla (TSLA) said adjusted earnings for the three months ending in September were pegged at 72 cents per share, up nearly 6% from the same period last year and 5 cents well head of the Street consensus forecast of 58 cents per share. Group revenues, Tesla said, rose 7.8% from last year to $25.18 billion, falling just shy of analysts' forecasts of a $25.37 billion tally. Gross automotive margins were 19.8%, a modest increase from last year that stopped Street forecasts of around 17%. Related: Tesla stock price slides ahead of Q3 earnings "We delivered strong results in Q3 with growth in vehicle deliveries both sequentially and year-on-year, resulting in record third-quarter volumes," the company said in a statement. "We also recognized our second-highest quarter of regulatory credit revenues as other OEMs are still behind on meeting emissions requirements." "Despite sustained macroeconomic headwinds and others pulling back on EV investments, we remain focused on expanding our vehicle and energy product lineup, reducing costs and making critical investments in AI projects and production capacity," Tesla added. "We believe these efforts will allow us to capitalize on the ongoing transition in the transportation and energy sectors." More Tesla: Tesla shares were marked 7.75% higher in after-hours trading immediately following the earnings release to indicate a Thursday opening bell price of $230.21. Tesla, which earlier this year cautioned the 2024 deliveries would be "significantly lower" that 2023 levels, shifted around 463,000 vehicles over the three months ending in September, a 6.4% increase from last year that snapped a streak of two consecutive quarterly declines. Despite Tesla's earlier warnings, Musk has said the group can top last year's record 1.8 million delivery tally, but that would require a blowout fourth quarter performance of more than half a million - and possibly further price cuts or incentives. Related: Veteran fund manager sees world of pain coming for stocks

Tesla shares jump as profits rise on lower expenses

New York (AFP) - Tesla shares surged Wednesday after the electric car maker reported a jump in profits, as increased auto sales and lower expenses offset the drag from a drop in vehicle prices. The company, led by Elon Musk, reported third-quarter profits of $2.2 billion, up 17 percent from the year-ago period on an eight-percent increase in revenues to $25.2 billion. The results broke a string of recent Tesla earnings that have seen the high-flying company report lower profits year-over-year as competition intensifies among automakers. The outspoken Musk offered a bullish outlook on Tesla's prospects, pointing to the strong results as evidence the company's ambitious vision is being realized. "Tesla is focused on building the future of energy, transport, robotics and AI, and this is a time when others are just focused on managing around near term trends," Musk said on an earnings call. Tesla had previously announced a six-percent rise in vehicle sales. A major question coming into Wednesday was the company's ability to manage profitability after slashing vehicle prices over the last year or so in response to increased offerings from other companies in the electric vehicle industry. Tesla's results benefited from lower cost-per-vehicle, stemming from a dip in material costs and freight expenses, the company said. Tesla said it expects "slight growth" in 2024 deliveries "despite ongoing macroeconomic conditions." In July, the company had said volume growth "may be notably lower" than in 2023, when deliveries surged 38 percent. Musk expects a 20 to 30 percent rise in auto sales in 2025, when the company also expects to unveil autonomous ride-hailing in Texas and perhaps California. The California venture is "contingent on regulatory approval," Musk said, describing Texas' regulatory climate as more straightforward. Shares of Tesla jumped nearly 12 percent in after-hours trading. Heading into Wednesday, the company's shares were down about 14 percent for 2024, however. Besides earnings disappointments earlier in 2024, Musk has been under pressure to demonstrate new Tesla products to wow consumers. A heavily-touted launch event earlier this month in Los Angeles showing off its autonomous robotaxi vehicles received mostly lackluster reviews. Following Wednesday's results, CFRA Research lifted its equity price target for Tesla, noting that "expectations were low heading into the release after four consecutive bottom-line misses and a 'Robotaxi Day' that left investors with more questions than answers." Boosting Trump Musk has also stood out among major corporate figures with his activism in the 2024 presidential election on behalf of Republican candidate Donald Trump. Musk's efforts have gone well beyond the practice of contributing funds to preferred candidates. The billionaire has appeared on the stump with Trump, including at a rally in Butler, Pennsylvania earlier this month in which Musk -- donning a black "Make America Great Again" hat -- was photographed literally jumping for joy in support of the ex-president. More recently, Musk has unveiled a lottery to give $1 million a day to registered voters in swing states, in a gambit that some experts suspect breaches US campaign laws. Musk's support of Trump also poses questions as to its effect on the Tesla brand, given the polarized state of the US electorate. On Wednesday's call Tesla officials read questions from investors they screened. They also took two questions from Wall Street analysts without disclosing if there were ground rules on what could be asked. Democratic vice presidential candidate Tim Walz took a shot at Musk on Tuesday night during a campaign rally in Wisconsin, noting that Trump could appoint Musk to a post that influences the regulation of the billionaire's business. Musk could "spend billions to make more than $10 billion on the back-end," Walz said. "So in other words, Donald Trump, in front of the eyes of the American public, is promising corruption," Walz added. "I don't believe (Trump) keeps many promises but he'll keep that one." Musk shot back at Walz on his X platform, posting to the former Twitter a picture of a lost-looking Walz captioned, "Who Am I... Why am I here"?

Tesla stock soars after beating analysts' profit expectations

Tesla (TSLA) on Wednesday reported mixed earnings for its last quarter, with revenue failing to meet expectations, strong profits, and a renewed promise for more affordable vehicles on the way. The Austin, Texas-based company reported revenue of $25.1 billion, up 8% compared to last year, but below the $25.4 billion expected by analysts, according to estimates compiled by FactSet (FDS). Tesla recorded revenue of $23.3 billion in the third quarter of 2023 and $25.5 billion during the prior quarter. Automotive revenue grew by 2% during the July to September quarter to $20 billion, accounting for the vast majority of Tesla's income. Tesla said its energy generation and storage business made $2.3 billion for the quarter, a 52% year-over-year increase but down from the $3 billion it made last quarter. The "services and other revenue" category accounted for $2.79 billion, a 29% increase compared to last year. Earnings per share came in at 62 cents, beating the 50 cents per share as expected by Wall Street and the 53 cents per share last year. Tesla reported $2.28 billion in net income, more than the $2.18 billion expected by analysts but well below $3.14 billion a year ago. The company took a 45% year-over-year hit last quarter with net income of $1.5 billion. The automaker's gross margin was just shy of 20%, an increase of 195 basis points compared to the same time in 2023, the company said. Operating income grew to $2.7 billion, up 54% compared to a year earlier, giving Tesla an operating margin of 10.8%. Tesla's cost of goods sold hit its lowest level yet, at about $35,100 per vehicle. Margins were helped by Tesla's second-best quarterly performance for sales of regulatory credits to automakers lagging behind on meeting carbon emission requirements. Tesla shares fell by almost 2% leading up to the company making its earnings public on Wednesday. The stock is now up 9% as of 4:30 p.m. ET. During an earning call Wednesday afternoon, analysts and investors were looking for a series of updates on Tesla's plans related to artificial intelligence -- like its newly-revealed Cybercab concept -- and electric vehicle sales. In Tesla's earnings report, it reiterated its plans to launch more affordable options early next year. Tesla has, so far, sold more than 1.29 million electric vehicles in 2024, including 462,890 units delivered between July and September. That doesn't give the company much wiggle room to reach 1.8 million sales by the end of the year; in 2023, it sold 1.81 million units. To hit that target, Tesla will need to sell more than 516,000 vehicles between October and December. The current analyst consensus puts Tesla as narrowly missing that delivery target, according to FactSet.

Tesla earnings are coming. Here's what to know

Tesla (TSLA-1.34%) on Wednesday is expected to report its earnings for the July to September quarter, offering a fresh chance for Wall Street to interrogate CEO Elon Musk on his plans. The Austin, Texas-based company has a number of challenges on the horizon, namely its plans to transform largely into a firm focused on artificial intelligence and robotics. Investors are looking for details on how Tesla plans to boost sales of its popular, but aging, electric vehicles, while developing its AI and robotics technology, and trying to win over regulators. They're also interested in Tesla's products currently under development, like the Tesla Roadster. Here's what you need to know ahead of Tesla's third-quarter earnings report. Tesla, on Oct. 10, delivered its first product demonstration for the Cybercab, a planned autonomous vehicle that will eventually be part of the automaker's planned network of robotaxis. But beyond what we can see of the vehicle -- its "butterfly wing" doors, lack of steering wheel or pedals, two seats, and large trunk -- not much is known about it or the robotaxi network. Analysts will be looking to Musk to offer some more refined details than what was offered at the launch event, titled "We, Robot." That will likely include Tesla's estimated production costs, market size, timeline for regulatory approval, and other dull -- but necessary -- details left out of Musk's spectacle. "In contrast to most investor events these days, this was more akin to a show followed by a big party," Deutsche Bank (DB-0.94%) analysts said after the event, adding that "we generally came away underwhelmed by the lack of details disclosed and short length of the Cybercab demo ride." Many valuations of Tesla's current and future stock price account for a planned robotaxi network. But such a network, which Musk has called a "combination of Airbnb and Uber (UBER+1.14%)," isn't expected for years to come. At the event, Musk seemed to encourage people -- especially current drivers for Uber and Lyft (LYFT-0.93%), who often aren't very wealthy -- to buy multiple Cybercabs. It's unclear whether or not Tesla would let its Cybercabs be used on non-Tesla networks such as Uber's or how the profits would be shared between a network operator and the car owner. Either way, J.P. Morgan (JPM-0.92%) analysts have said, shifting from a Tesla-operated robotaxi network to selling those vehicles wouldn't be a welcome prospect. Tesla expects the Cybercab to eventually be available for sale to consumers at less than $30,000, but it won't enter production "before 2027," according to Musk. It's unclear whether Tesla is working on a $25,000 electric car, which has reportedly been scrapped or delayed in favor of the Cybercab, but is still on analysts' wishlists. Earlier this month, Tesla also demonstrated its Optimus humanoid robots and unveiled a planned autonomous vehicle capable of carrying 20 passengers, the Robovan. Investors are looking for details on those products, as well as an update on the fate of the $25,000 vehicle, the Tesla Semi, and Musk's long-awaited -- and delayed -- Roadster sports car. The next-generation Roadster was unveiled in 2017 and expected to make its return in 2021, before it was hit with delays after delays. Musk has previously said a prototype for the next-generation model should be unveiled by the end of this year, with production starting in 2025, but updates have been scarce. Musk earlier this month provided an optimistic timeline to make Tesla's vehicles fully autonomous. "We do expect to start fully autonomous unsupervised [Full Self-Driving mode] in Texas and California next year," Musk said at the Oct. 10 event, where some 30 Model Y cars drove autonomously in the limited proving grounds of Warner Bros. Discovery's (WBD-3.52%) Hollywood lot. Tesla's other vehicles -- the Model S, Model X, and the Cybertruck -- would get access down the road and that access would be expanded into other regions of the U.S. later on, according to Musk. But such an eventuality is muddled given Tesla's numerous regulatory concerns and lawsuits. Federal regulators on Friday launched a new investigation into Tesla's technology after one of its vehicles equipped with Full Self-Driving fatally struck a pedestrian. The National Highway Traffic Safety Administration has opened at least five investigations of Tesla. And although Tesla has said it expects to launch FSD in China in the first quarter of 2025, the rollout is expected to be delayed, CNEVPOST reports, citing the Beijing-owned China Daily. Tesla has, so far, sold more than 1.29 million electric vehicles in 2024. That's not a small amount of cars. But it doesn't give the company much wiggle room to reach 1.8 million sales by the end of the year. In 2023, it sold 1.81 million units. To hit that target, Tesla will need to sell more than 516,000 vehicles between October and December. Its best quarterly performance to date was in the third quarter of 2023, when it delivered more than 484,000 units to customers. Analysts currently expect deliveries of 472,000 vehicles for the fourth quarter, according to a handful of estimates compiled by FactSet (FDS-0.54%). That would put total deliveries at 1.76 million, or a slip of 2%. Deliveries could miss by slimmer margins of 0.3%, according to 18 analysts polled by LSEG. Wall Street will also be eyeing Tesla's gross margins, as the carmaker has slashed prices to boost demand. In China, Tesla has introduced a series of incentives, such as low-cost financing options to drive demand in the competitive market. Analysts expect Tesla to record gross margins of 14.7% for the July to September quarter, compared to 16.3% a year earlier and 14.6% during the second quarter of 2024. Wall Street wants to see margins inch closer to 20% ahead of 2025 to renew confidence, according to Wedbush Securities analyst Dan Ives. "We need to start seeing this key metric head into the high teens for 3Q/4Q to give the Street comfort much of the price cuts are in the rearview mirror showing better margin days are ahead for 2025," Ives wrote Monday. The average Tesla sold for $58,212 last month, according to Kelly Blue Book, although those figures are heavily skewed by the Cybertruck, a pricy electric pickup truck. Cybertruck sales are expected to slow in the coming months, as Tesla's backlog of reservation holders appear to be largely holding off on buying the expensive vehicle. Earnings per share are expected to hit 60 cents, down from 66 cents a year ag0, but up from 52 cents last quarter, according to FactSet. Revenue is expected to reach $25.4 billion, compared to $23.3 billion in the third quarter of 2023 and $25.5 billion during the prior quarter.

Tesla's Fancy Data And Computing Claims Likely Will Not Impress Investors: Gary Black Highlights Drastic Jump In EV Disengagement Rates And Missing Robotaxi Details As Key Question - Tesla (NASDAQ:TSLA)

The Future Fund LLC Managing Partner Gary Black anticipates Tesla Inc.'s TSLA upcoming earnings call will face scrutiny over several critical business segments, particularly the company's autonomous driving capabilities and vehicle profitability targets. What Happened: Black, writing on social media platform X, suggested Tesla management is unlikely to discuss details of its planned $25,000-$30,000 compact vehicle during the call, citing potential impact on Model 3 sales. Management "has been clear that earnings calls are not the appropriate place to discuss new product launches," Black noted. The analyst highlighted pressing questions about Tesla's autonomous driving progress, specifically the gap between current performance and regulatory requirements. How does Tesla "go from 300 miles per disengagement today to the 17,000 miles per disengagement likely needed by regulators to approve a robotaxi deployment license?" Black wrote, adding that management needs to provide substantive support beyond citing fleet size, data, and computing capabilities. Cybertruck profitability remains another key focus area, with investors seeking clarity on potential losses from the approximately 13,500 deliveries in the third quarter and the timeline for reaching breakeven status by year-end. Black also emphasized Tesla's significant growth potential through brand leverage, comparing it to Porsche's successful expansion into the SUV market. He identified several untapped market opportunities for Tesla: Compact vehicle segment ($25,000-$30,000 price range) Small pickup truck market Tesla Semi Tesla van Tesla Roadster Robotaxi services Robotics division "We continue to believe the $25,000-$30,000 Tesla Compact represents the largest single value creation opportunity not currently discounted by Tesla stock," Black concluded, while noting the robotics division's potential remains "largely unquantifiable" pending a working prototype. The earnings call is also expected to address questions about gross margins, financing promotions, and potential impacts of different political scenarios on Tesla's EV policies. Black also anticipates a question about how Tesla could fare under different political leadership, specifically if Former President Donald Trump or Vice President Kamala Harris were to become president. Investors will likely be interested in how each administration's policies might impact Tesla's electric vehicle strategy and growth in the U.S. market. See Also: Jay-Z, Praised by Warren Buffett as 'The Guy to Learn From,' Once Said He Wasn't Taught Emotional Intelligence, But How To Survive -- The Rap Legend's Growth Has Made Him Not Just A Better Person, But Also Worth $2.5B Today Why It Matters: The anticipation surrounding Tesla's conference call comes at a time when analysts are closely examining the company's fundamentals. Analyst Troy Teslike expects Tesla to miss consensus estimates for non-GAAP EPS, similar to previous quarters. Meanwhile, Wedbush Securities analyst Daniel Ives maintains an optimistic outlook, reiterating an Outperform rating with a $300 price target. Shareholders are eager for updates on Tesla's pending promises, including timelines for upcoming products and the rollout of Full Self-Driving technology. Despite challenges, The Future Fund LLC remains optimistic about Tesla's prospects, citing global EV adoption trends and expansion opportunities as key factors in their long position. Price Action: Tesla stock closed at $217.97 on Tuesday, down 0.40% for the day. In after-hours trading, the stock dipped further 0.22%. Year-to-date, Tesla's stock has dropped by 12.26%, according to data from Benzinga Pro. Read Next: Dan Ives Acknowledges Nvidia, Microsoft As 'Core Drivers Of AI' But Sees Palantir, IBM, AMD And Apple Joining The Party As Well -- Robust Q3 Earnings Expected Image Via Tesla Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs