Tesla's third-quarter earnings have shown an unexpected increase year-over-year, marking a notable milestone for the electric vehicle manufacturer. Despite this positive trend, the company's revenue has fallen short of Wall Street's expectations, indicating challenges in the broader market environment and highlighting areas that investors should closely monitor. For the September quarter, adjusted earnings rose to $0.72 per share, an increase from $0.66 the previous year.
This performance surpassed the consensus forecast, which was set at $0.60 per share according to Capital IQ polling. Despite the earnings uptick, revenue only increased by 8%, reaching $25.18 billion, which was below the Street's anticipated figure of $25.67 billion. In after-hours trading, Tesla's shares soared by 9%, indicative of investor optimism despite the revenue miss.
The automotive segment saw a modest revenue increase of 2%, totaling $20.02 billion. However, the more significant growth was observed in Tesla's energy generation and storage business, which surged by 52% to $2.38 billion. Tesla's operating margin also saw an impressive growth of 323 basis points, reaching 10.8%, primarily attributed to a lowered cost per vehicle and an increase in overall deliveries. Nevertheless, the decline in average selling prices for models S, 3, X, and Y has put pressure on operating profitability and consolidated revenue.
This information was detailed in a shareholder presentation, reflecting the ongoing challenges Tesla faces despite positive earnings figures. Earlier this month, Tesla reported third-quarter deliveries of 462,890 vehicles, marking an increase both sequentially and annually. However, these figures missed some analysts' expectations, highlighting a potential area of concern going forward.
Furthermore, Tesla's recent event titled 'We, Robot' fell short of expectations, lacking crucial updates and details that left some analysts feeling disappointed. In its late Wednesday communications, Tesla indicated a cautious outlook, expecting 'slight growth' in vehicle deliveries for the remainder of the year.
This stands in contrast to previous forecasts suggesting a possible notable decline in annual vehicle volumes. The company also stated, 'Preparations remain underway for our offering of new vehicles, including more affordable models, which we will begin launching in the first half of 2025.' This statement underscores Tesla's commitment to rolling out new products amidst ongoing economic challenges.
The company remains focused on innovation and expansion, despite facing headwinds in the macroeconomic landscape that have caused other players in the electric vehicle sector to scale back their investments. In addition to vehicle expansion, Tesla emphasizes the importance of reducing costs and pursuing critical investments in artificial intelligence projects and enhancing production capacity.
As such, Tesla continues to navigate a complex marketplace while striving to maintain its competitive edge in the ever-evolving landscape of electric vehicles and renewable energy. Current share price stands at 231.74, reflecting a change of +18.09, indicating a percent change of +8.47..