Tesla Stock Surges to 15 Month High

Team Veye | 11-Nov-2024

The stock had hit $1 trillion market value upon Musk backed Trump winning the U.S. presidential election. On Friday, its shares climbed 8.2% to $321.22 boosting the company’s valuation to exceed the trillion-dollar mark for the first time in more than two years. Becoming one of the Best Growth Stocks to Buy Now

TESLA INC (NASDAQ: TSLA)

TESLA INC (NASDAQ: TSLA) delivered a strong Q3 2024 where notable growth in vehicle deliveries and in energy generated and stored reflected a record performance in vehicle delivery volumes that reflected a significant YoY rise. The cost of goods sold per vehicle dipped to the record low of ~$35,100 in a further bid by Tesla to cut costs and bring down the sales price of EVs. Its Energy business saw some good momentum, with gross margins coming in at a record. Operating cash flow reached $6.3 billion, and free cash flow stood at $2.7 billion, with Tesla's cash reserves rising to $33.6 billion. 

Tesla’s vehicle production continued to expand, with Q3 seeing year-over-year growth in both production and delivery volumes. Notable achievements included the production of Tesla’s 7-millionth vehicle and the expansion of production in key regions like California, Nevada, and Texas. The ramp-up of the refreshed Model 3 and increased Cybertruck production were key highlights. In production, Tesla's Shanghai factory passed major milestones by making its 3-millionth vehicle and shipping its 1-millionth vehicle. In Europe, Gigafactory Berlin’s Model Y became the best-selling vehicle of all types in several countries, and Model Y became the best-selling EV in Norway. Tesla remains on track to start Semi production by the end of 2025, continuing its global growth and improving vehicle cost efficiencies across its factories. 

Tesla, is now among the high growth stocks, having made significant progress in artificial intelligence and software development during the quarter. The company released the 12.5 series of Full Self-Driving (FSD) software, which includes several new features such as "Actually Smart Summon" and improved safety and comfort. Tesla also continued to scale up its AI infrastructure, deploying a 29k H100 cluster at Gigafactory Texas, with plans for 50k H100 units by the end of October. In addition, the company unveiled its next-generation autonomous vehicle platform with Cybercab and Robovan, designed from the ground up for autonomy. The 4680 battery cells for Tesla reached a milestone point by producing the 100-millionth unit, with further development of the capability of Tesla's batteries and powertrain. 

Tesla’s Energy and Services businesses continued their growth trajectory in Q3. The Energy Generation and Storage segment achieved a record gross margin of 30.5%, despite a slight reduction in Megapack volumes. Powerwall deployments also set a new record for the second consecutive quarter, with more than 100,000 Powerwalls enrolled in Virtual Power Plant programs. Tesla’s Supercharger network saw significant expansion, adding over 2,800 new stalls globally. The Services and Other segment grew by 90% YoY in gross profit, driven by improvements in service center operations, supercharging, and parts sales. Overall, Tesla's expanding energy and services operations are becoming an increasingly profitable part of its business as the company continues to scale its renewable energy products and infrastructure. 

Source: Company’s Report

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