Tesla released its Q3 2024 results, revealing mixed performance. While revenue missed expectations, earnings per share (EPS) exceeded forecasts, marking Tesla’s first earnings beat in four quarters.
EPS for Q3 stood at 72 cents, beating the Zacks Consensus Estimate of 58 cents and surpassing the prior year’s 66 cents. Total revenue reached $25.18 bn, up 7.2% year over year, but below the consensus forecast of $25.57 bn.
Tesla’s global car deliveries hit 462,890 units, including 439,975 Model 3/Y units and 22,915 other models. This marked the first year-over-year increase in deliveries for 2024, with a 4.3% sequential rise.
Tesla’s Insurance Business Performance
Tesla’s insurance carriers posted mixed results for Q3 2024.
- Tesla General Insurance (active in Nevada, Oregon, and Virginia) reported $35.7 mn in written premiums, a 94% year-over-year increase. The carrier reported a year-to-date net underwriting loss of $5.6 mn and a combined ratio of 118%.
- Tesla Property & Casualty (operating in Colorado, Maryland, Minnesota, Texas, and Utah) recorded $117 mn in written premiums, a 144% rise from the previous year. It reported a year-to-date net underwriting loss of $22.5 mn, with a combined ratio of 121%.
- Tesla Insurance Company began writing business in California in Q3 2024. Previously, Tesla offered coverage in California through a fronting deal with State National, which recorded $387 mn in premiums for Tesla as of Dec 31, 2023. Tesla Insurance Company reported $45 mn in Q3 written premiums and a $14 mn net underwriting loss.
Across all its insurance carriers, Tesla reported a total net underwriting loss of $42 mn for the first nine months of 2024.
Automotive and Other Business Segments
Tesla’s total automotive revenue for Q3 reached $20 bn, a 2% year-over-year increase but below estimates of $22.2 bn. Revenue from regulatory credit sales totaled $739 mn, up 33.3% from the prior year. Excluding regulatory credits and leasing, automotive sales revenue hit $18.8 bn, rising from $18.5 bn a year earlier.
Energy Generation & Storage revenue reached $2.37 bn, up from $1.55 bn in Q3 2023 and ahead of the $2.16 bn forecast. Energy storage deployments rose to 6.9 GWh, up from 4 GWh the previous year. Tesla expects deployments to increase in Q4, aiming to double last year’s total.
Services & Other revenue was $2.79 bn, reflecting a 29% year-over-year increase.
Automotive Gross Profit & Margins. Automotive gross profit reached $4 bn in Q3, with a margin of 20.3%, up from 18.7% a year earlier and ahead of the 18.3% forecast. This growth was driven by strong regulatory credit revenue as rival automakers struggled with emissions compliance. Automotive sales gross margin (excluding leasing and regulatory credits) rose to 18.6%, up 40 basis points, due to reduced costs for raw materials, freight, duties, and one-time charges.
Tesla’s Q3 performance highlighted strong insurance growth, steady automotive profitability, and rising energy storage demand.
