Tesla reaffirms its intention to launch "more affordable" electric vehicles by early 2025.

Tesla has released its third-quarter earnings report, just after a robotaxi event that generated high expectations but turned out to be disappointing. In the report, the company reaffirmed its intention to launch a "more affordable" electric vehicle in the first half of 2025. Tesla stated that to accelerate the global transition to sustainable energy, it is crucial for electric vehicles to be accessible to everyone and for the total cost of ownership per mile to be competitive with all forms of transportation. "Preparations are ongoing for our new vehicle offerings, including more affordable models, which we will begin launching in the first half of 2025," the company declared.

This year, Tesla had abandoned the idea of developing a vehicle that could have been called "Model 2," which was expected to cost around $25,000. However, under pressure from investors, Elon Musk, Tesla's CEO, reaffirmed his commitment to this model, though it is still unclear whether it will be a completely new vehicle or a more economical version of the Model 3. Musk also announced that a two-seater version of the Cybercab would be available for $30,000 starting in 2026.

Financially, the company reported a net income of $2.2 billion on total revenue of $25.2 billion, representing a 7% increase compared to the third quarter of the previous year, when revenues were $23.4 billion. This result slightly surpassed expectations, as a 9% decline in quarterly earnings was anticipated, although a 9% increase in revenue was expected.

Tesla's revenue from selling regulatory credits to other manufacturers also showed strong performance, reaching its second-largest quarter in this aspect, as many other OEMs still do not meet emission requirements. The company's gross margins were a focal point, as investors hoped to see improvements after several months of decline. Price cuts and cooler demand have caused the company’s margins to fall to their lowest levels in six years. Despite this, the company reported gross margins of 19.8%, slightly above the 18% from the previous quarter, and recorded vehicle costs at a historic low of $35,100.

Quarterly deliveries were 462,890 vehicles, representing a 6.3% increase compared to the second quarter of 2023; however, analysts were expecting a higher number and now fear a potential annual decline in deliveries after years of rapid growth. In the report, Tesla highlighted the production of its 7 millionth vehicle on October 22 and mentioned that the Cybertruck has become the third best-selling electric vehicle in the U.S., after the Model Y and Model 3, achieving positive gross margins for the first time.

During a conference with investors, Musk expressed that his "best estimate" was that vehicle growth would reach between 20% and 30% next year, citing "lower costs" and the "advent of autonomy." Additionally, he announced that Tesla is testing its transport app with employees in the Bay Area, with plans to launch a paid service in 2025.

In the context of increasing competition and a decreasing demand for electric vehicles, Tesla continues to perform well in China, although it faces strong competition from companies like BYD in the world's largest electric vehicle market. Musk's efforts to transform the company into one that focuses on selling robots and autonomous vehicles have generated skepticism. After the robotaxi event, the company's stock fell, but it experienced a notable rebound in trading after the release of this earnings report.