Tesla's Stock Soars 6.14% on Record Deliveries and Energy Sector Boom
1min read Recently, Tesla's stock surged by 6.14% after showing impressive financial results in the third quarter. The company's total revenue reached $25.182 billion, marking an 8% increase compared to the previous year. Notably, Tesla's GAAP net income grew by 17% to $2.2 billion. In this period, Tesla managed to deliver 463,000 vehicles worldwide, setting a new quarterly record with a 6% year-over-year growth.
Production figures show a total of 469,796 vehicles produced in the third quarter, reflecting a 9% increase. The popular Model 3 and Model Y led the production numbers with a combined output of 443,668 units and 439,975 deliveries, while the Model S and X contributed 26,128 units, among which 22,915 were delivered. This strong performance has contributed to a noteworthy rise in Tesla's stock value recently.
Tesla’s energy sector is rapidly becoming a significant part of its business. Revenue from energy generation and storage reached $2.376 billion, a 52.4% increase, with an exceptional gross margin of 30.5%. Tesla deployed 4 GWh of energy storage products during the quarter, reiterating the energy business as a significant profit contributor.
Despite successes, Tesla faces challenges, particularly in the competitive Chinese market, where local brands like BYD and Geely offer diverse product lines. Efforts to boost demand in such markets include price cuts and incentives, though these have not significantly boosted older models' appeal. The average selling price in the third quarter fell to a four-year low of $42,500.
In contrast, Tesla’s Cybertruck model has not met initial expectations. Although pre-orders once hit one million, production setbacks and pricing have limited deliveries to about 40,000–50,000 units. To counteract slow sales, Tesla reduced lease prices by over 10%, making the vehicle more accessible.
Strategically, Tesla's new lithium refinery in Texas has commenced operations, marking it as the first automaker in North America to own such a facility. This development could prove vital for future electric vehicle production, focusing on sustainable lithium refining practices.
By enhancing domestic refining capabilities, Tesla aims to secure a stable supply chain for battery materials critical to EV manufacturing. The move aligns with Elon Musk’s broader initiative to turn lithium refining into a competitive advantage and drive sustainability across its operations.