What caused TSLA's Q3 2024 revenue decline?

Tesla's Q3 2024 revenue decline can be attributed to a combination of factors: 1. **Automotive Sales Reduction**: Tesla's automotive sales experienced a significant drop, with revenue from automotive sales declining to $18.53 billion in Q2 2024, down from $20.42 billion in the same period the previous year. This reduction in sales volume contributed to the overall revenue decline. 2. **Price Cuts and Margin Pressure**: Tesla has been implementing price cuts to boost sales, which has led to a decline in profit margins. Analysts estimate that the recent price cuts could reduce global revenue per unit by $550 and total price reductions by $1,000 per vehicle. These price cuts, while intended to increase sales volume, have a negative impact on revenue when not adequately offset by cost reductions or increased delivery volumes. 3. **Energy Generation and Storage Growth**: Despite the decline in automotive sales, Tesla's Energy Generation and Storage segment saw a significant year-over-year increase in revenue, growing by 99.7% to $3.01 billion. This segment's strong performance highlights Tesla's growth in alternative revenue streams, which may help offset some of the decline in automotive sales revenue. In summary, Tesla's Q3 2024 revenue decline is primarily due to a reduction in automotive sales and the impact of price cuts on margins, although growth in the Energy Generation and Storage segment helps to mitigate the decline.