Quarterly Report — Q3 2024
Filed October 24, 2024
Q3 2024 revenue came in at $25.18 billion, up 8% year-over-year but with automotive sales essentially flat as price cuts continued to pressure margins. The real story is the energy generation and storage segment, which surged to become a meaningful profit contributor, while services and other revenue grew steadily. Tesla ended the quarter with a strong cash position but faces ongoing margin compression in its core auto business as it bridges toward next-generation vehicles.
Filing details
Performance by segment
Automotive
Automotive segment revenue was $22.81B in Q3 2024 vs $21.79B in Q3 2023, up 5%, but nine-month revenue declined from $67.01B to $64.96B, down 3%. The quarterly gain was driven by ~23,000 additional Model 3/Y cash deliveries, 8,000 additional deliveries of other models (primarily Cybertruck ramp), and $326M of FSD revenue recognition, offset by lower average selling prices from price reductions and financing incentives. Nine-month automotive gross margin compressed from 19.7% to 19.0% due to lower ASPs and temporary under-utilization during production ramps.
“We are focused on profitable growth, including by leveraging existing factories and production lines to introduce new and more affordable products, further improving and deploying our FSD capabilities, including through our planned robotaxi product, reducing costs, increasing vehicle production, utilized capacity and delivery capabilities.”
Energy Generation and Storage
Energy generation and storage revenue surged 52% YoY to $2.38B in Q3 2024 and 53% YoY to $7.03B for the nine months, driven by increases in Megapack and Powerwall deployments. The segment deployed 20.41 GWh of energy storage products through Q3 2024. Gross margin expanded dramatically from 24.4% to 30.5% in Q3 and from 18.0% to 26.6% for nine months, driven by cost reductions including IRA manufacturing credits and a higher proportion of storage business within the segment.
“We continue to increase the production and capabilities of our energy storage products to meet high levels of demand, including the introduction of Powerwall 3 in 2024, the construction of a new Megafactory in Shanghai and the ongoing ramp at our Megafactory in Lathrop, California.”