Tesla says ‘more affordable’ EVs will launch early 2025

On the heels of its highly anticipated but ultimately disappointing robotaxi event, Tesla published its third quarter earnings report, in which it said it would launch a "more affordable" electric vehicle in the first half of 2025.

"In order to continue accelerating the world's transition to sustainable energy, we need to make EVs affordable for everyone, including making total cost of ownership per mile competitive with all forms of transportation," the company said. "Preparations remain underway for our offering of new vehicles - including more affordable models - which we will begin launching in the first half of 2025."

The company said it earned $2.2 billion in net income on $25.2 billion in revenue. That represents a 7 percent increase year over year compared to $23.4 billion in revenue in Q3 2023, and a 17 percent increase in net income, somewhat beating expectations. Analyst consensus predicted Tesla's quarterly profit would fall 9 percent in Q3, while revenues would rise 9 percent, according to FactSet.

The revenues the company receives from purchasing regulatory credits from other companies continued to perform strong. Tesla said it was its "second-highest quarter of regulatory credit revenues as other OEMs are still behind on meeting emissions requirements."

The company's gross margins were in the spotlight again, as bullish investors hoped to see improvements after months of steady decline. Rampant price cutting and cooling demand as well as cheaper financing have pushed the company's once-vaunted margins to their lowest point in six years.

Still, there were some positive signs of recovering. The company reported 19.8 percent gross margins based on generally accepted accounting practices, slightly more than the 18 percent reported last quarter and up slightly from Q3 2023.

The earnings come after Tesla reported a smaller-than-expected rise in third quarter deliveries, sending its stock price tumbling. The company said it delivered 462,890 vehicles to customers during the quarter, a 6.3 percent jump from Q2 2023. But analysts had been expecting more deliveries, and now fear that the company could be heading toward its first annual decline in deliveries after years of rapid growth.