### Tesla Q3 Performance Exceeds Expectations Despite Delivery Miss

Tesla's third-quarter financial results showed mixed outcomes as the electric vehicle giant posted revenue of $25.18 billion. This figure fell short of Bloomberg's consensus expectation of $25.4 billion but was higher than both the previous quarter’s $25.05 billion and the $23.4 billion reported a year ago.

In terms of earnings, Tesla delivered adjusted earnings per share of $0.72, surpassing the expected $0.60. This was supported by an adjusted net income of $2.5 billion and an impressive free cash flow of $2.9 billion. One of the standout metrics was Tesla’s gross margin, which came in at 19.8%, significantly higher than the anticipated 16.8%.

"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 noted in its earnings deck. Preparations are ongoing for the introduction of new, more affordable vehicle models, set to launch in the first half of 2025.

Earlier in October, Tesla disclosed that third-quarter deliveries slightly missed expectations. The company delivered 462,890 vehicles in Q3, a 6.4% increase from the previous quarter and higher than the 435,059 vehicles delivered in the same period last year. However, analysts had expected closer to 463,897 vehicle deliveries.

The earnings report highlighted that the refreshed Model 3 ramped up successfully in Q3 with higher production and lower costs of goods sold quarter-over-quarter. Additionally, Cybertruck production increased sequentially, achieving a positive gross margin for the first time.

Tesla projects "slight growth" in vehicle deliveries for 2024, with CEO Elon Musk suggesting during a conference call that 20%-30% growth is possible next year, albeit labeled as a "best guess."

Ahead of the Q3 disclosure, Tesla's stock had declined approximately 11% since unveiling its robotaxi, the Cybercab, at the "We, Robot" event in Burbank, California, on October 10. Investors and analysts had called for more detailed information on the Cybercab and the sub-$30,000 Model 2 EV.

During the conference call, Musk shared that the Cybercab is expected to reach volume production by 2026, with aims for 2 million units per year. Tesla is also testing robotaxi summoning and drives in the San Francisco area using safety drivers.

Notably, Tesla's Energy Generation and Storage business hit a record gross margin of 30.5% in the third quarter and is predicted to more than double its output year over year in 2024.