Elon Musk, Chief Executive Officer of SpaceX and Tesla and owner of X speaks at the Milken Conference 2024 Global Conference Sessions at The Beverly Hilton in Beverly Hills, California, U.S., May 6, 2024.
Tesla reported a 12% increase in third quarter revenue on Wednesday following two straight periods of declines. However, earnings missed analyst estimates, pushing the stock down about 2% in extended trading.
Here's how the company did, compared with estimates from analysts polled by LSEG:
Earnings per share: 50 cents adjusted vs. 54 cents estimated
50 cents adjusted vs. 54 cents estimated Revenue: $28.10 billion vs. $26.37 billion estimated
Total revenue climbed from $25.18 billion a year earlier. Automotive revenue increased 6% to $21.2 billion from $20 billion in the year-ago period, Tesla said.
Net income fell 37% to $1.37 billion, or 39 cents per share, from $2.17 billion, or 62 cents per share a year earlier. The profit drop reflected lower EV prices and a 50% increase in operating expenses, which the company said was in part due to artificial intelligence and "other R&D projects."
The end of the quarter coincided with the expiration of federal tax credits for electric vehicles, which were eliminated with President Donald Trump's spending bill. That pulled sales forward into the quarter as as consumers rushed to take advantage of the incentive before it went away.
On Tesla's last earnings call in July, CEO Elon Musk and finance chief Vaibhav Taneja warned shareholders about the impact of higher tariff costs and the expiration of the tax credits.
Revenue from automotive regulatory credits in the quarter fell 44% to $417 million from $739 million.
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