Tesla Delights Stock Market with Q3 Presentation - Affordable Electric Vehicle at $25,000, Unveiled as a Robo-Taxi Offering
Tesla, the electric vehicle (EV) giant, has reported impressive results for Q3 2024, with a gross margin of over 17% excluding the sale of CO2 credits, surpassing expectations. The company's earnings per share also showed a significant increase, reaching $0.72, as stated in their latest earnings report.
Elon Musk, Tesla's CEO, announced a free upgrade for early Full Self-Driving (FSD) buyers if the previous version (HW3) proves to be too weak for true autonomy. The current version 12.5 of FSD has already achieved an improvement in the distance driven without a required human intervention by a factor of 100 since the beginning of the year. Tesla's FSD is expected to cover more miles than a human driver before a critical intervention is required in the second quarter of 2025.
In terms of production, Tesla plans to produce at least 2 million units per year of the Cybercab in more than one factory, with potential production reaching up to 4 million units later on. The Cybercab, set to go into production in 2026, is optimized for autonomous driving and will cost around $25,000. It's worth noting that the Cybercab will not have pedals or a steering wheel, but it will still be possible for individuals to buy and use one on their own.
Tesla's robotaxi service is already being offered to employees in the Bay Area, albeit still with a "safety driver" behind the wheel. The company's management has stated that all their vehicles are now robotic taxis, referring to their current and past electric vehicles.
The Megapack factory in California has now reached the target rate of 40 gigawatt-hours of production per year with 200 units per week. Tesla is close to the point where its own 4680 batteries would be the most competitive in North America.
The Model Y, reportedly planned for a refresh in early 2025 under the codename Juniper, could be considered a new electric vehicle and may have significantly reduced production costs due to progress with the 4680 battery.
It remains unclear what Tesla means by the "more affordable" electric vehicles in the first half of 2025 mentioned in their Q1 2024 report and again now. However, it is expected that the customers likely to buy these vehicles are primarily price-conscious buyers looking for newer, more affordable electric models as the price gap between electric and combustion vehicles narrows significantly, including urban users and environmentally conscious consumers aiming to switch to electric vehicles with improved cost-effectiveness.
Tesla's stock surged in regular trading on Thursday, gaining nearly 22%, closing at $260.48, and giving the company a market capitalization of around $836 billion. CEO Elon Musk estimated that deliveries could increase by 20-30% next year, significantly higher than what analysts were expecting.
In conclusion, Tesla's Q3 2024 earnings report showcases the company's continued success and its commitment to pushing the boundaries of electric vehicle technology and autonomous driving. The company's plans for the Cybercab, robotaxi service, and more affordable electric vehicles in the near future indicate a promising future for Tesla and the electric vehicle industry as a whole.
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