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Tesla reports robust profit increase on strength of battery storage sales

Writer's picture: The San Juan Daily StarThe San Juan Daily Star


Tesla’s plant in Grünheide, Germany on Feb. 13, 2024. Tesla’s profit for the third quarter increased 17% from a year ago, the company said, as strong growth in its battery storage and other businesses more than made up for a modest increase in car sales. (Katrin Streicher/The New York Times)

By Jack Ewing


Tesla’s profit for the third quarter increased 17% from a year ago, the company said last week, as strong growth in its battery storage and other businesses more than made up for a modest increase in car sales.


The company said it earned $2.2 billion from July through September, compared with $1.9 billion in the same period last year. Sales were $25.2 billion, compared with $23.4 billion a year earlier. But Tesla warned investors to expect only “slight growth” in the number of cars it will deliver this year.


Tesla shares jumped nearly 12% in extended trading last Wednesday as the company’s third quarter results were stronger than investors had expected.


Much of Tesla’s strong performance came from things other than selling vehicles. Sales of storage batteries, which are used by utilities, businesses and homeowners, jumped 52% in the quarter from a year earlier, and revenue from services such as charging climbed 29%.


The company also made $739 million from selling regulatory credits to other automakers that need them in order to meet emissions regulations. That number was up 33% from a year earlier.


Tesla, which is led by Elon Musk, accounts for almost half the electric cars sold in the United States and is a bellwether for electric car demand. Battery-powered vehicles, which have no tailpipe emissions, are considered critical to fighting climate change.


Slower overall growth in electric car sales this year can largely be attributed to Tesla, which this month reported a 6% increase in the number of vehicles it sold in the third quarter after sales fell in the first six months of the year.


Recent data has hinted at a pickup in electric car sales as companies including General Motors and Hyundai introduce new models. But no automaker except Tesla accounts for more than 10% of the U.S. electric car market.


Tesla depends on the Model 3 sedan and Model Y SUV for most of its sales. But both have changed only modestly in recent years. Except for the Cybertruck, which has sold in limited numbers, Tesla has not introduced a completely new vehicle since 2020.


To increase sales, the company has offered low-interest car loans. The strategy has been effective but has weighed on its profit. Analysts say Tesla needs new models to restore the strong sales growth it enjoyed before this year.


The company said Wednesday that, in fact, new models would be coming next year. “Preparations remain underway for our offering of new vehicles — including more affordable models — which we will begin launching in the first half of 2025,” Tesla said in a statement.


During a conference call to discuss the results, Musk predicted that the new vehicles would increase sales by 20% to 30% next year, barring an economic decline or other events outside Tesla’s control.


That will reassure investors who are more preoccupied with the short term, said Will Rhind, CEO of GraniteShares, an investment firm that offers funds aimed at Tesla.


Musk has focused recently on plans for a self-driving “cybercab,” while saying little about a more affordable Tesla. The company unveiled a prototype of the cybercab in Los Angeles this month, but offered little detail on the technology. The event left many investors disappointed.


“There are a lot of potentially incredible things that the company is doing,” Rhind said. “But,” he added, “there’s an element of caution. The cybercab, while it’s a great idea, is not a reality yet.”


Musk spent most of the conference call discussing what he said was exponential progress in self-driving technology. “I think we’ve made very clear the future is autonomous,” he said. Tesla will offer autonomous rides in California and Texas next year using its existing models, pending regulatory approval, Musk said.


His optimism did not appear to have been tempered by resistance from regulators. Last week the National Highway Traffic Safety Administration said it was investigating whether a Tesla system that the company calls “full self-driving (supervised)” was responsible for four collisions, including one that killed a pedestrian.


Musk’s vocal support of former President Donald Trump, and the millions of dollars he is spending to support the candidate’s presidential campaign are probably not helping Tesla sales, either. Surveys show that liberals are more likely to buy electric cars than conservatives, many of whom share Trump’s negative views of such vehicles.


Musk did not discuss politics during the conference call Wednesday.


While Tesla sells far more electric vehicles than any competitor, its market share in the United States slipped to 48.2% in the third quarter from 49.8% in the second quarter, according to Kelley Blue Book, which tracks the industry.


In China, Tesla has faced stiff competition from BYD and other domestic automakers that are introducing new models at a faster rate, often at significantly lower prices. In Europe, Tesla and other carmakers have suffered from a slowdown in electric car sales after Germany and other countries cut financial incentives for buyers.

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mistne38
15 janv.

Tesla reports robust earnings for the latest quarter, showcasing significant growth in both revenue and vehicle deliveries. The company has continued to excel in expanding its market presence and improving production efficiency. With a focus on sustainability and cutting-edge technology, Tesla’s vehicles are gaining more traction among eco-conscious consumers. In addition to its strong performance, Tesla’s commitment to innovation is also evident in its development of autonomous driving features and energy storage solutions. If you’re looking for more information on electric vehicles or want to explore options, be sure to visit Getmancar for the latest updates and deals.

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feriyi5674
27 nov. 2024

Tesla has reported a significant profit boost, driven by strong sales in its battery storage segment. The company's innovative energy solutions are gaining traction globally, contributing to its financial success. As Tesla expands its market share in energy storage, consumers also find excitement in Black Friday deals, including the popular heated jacket Black Friday offers. This seasonal shopping surge highlights growing interest in tech-forward products, underscoring Tesla's continued dominance in both the automotive and energy industries.

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timovi7763
07 nov. 2024

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