Tesla releases 5 surprises, Taiwan chain orders are promising

Tesla recently announced positive financial results and outlook exceeding Wall Street expectations, including continual growth in delivery volumes for this year and the next, the Cybertruck achieving its first profit, and plans for a more affordable vehicle with a price target below $30,000 for the first half of next year.

Industry analysts highlight that Tesla is not deterred by headwinds in the electric vehicle market, and its growing delivery numbers help assuage market concerns. This positive trend is echoed in the orders being placed by Taiwanese suppliers like Quanta Computer, Hota Industrial Manufacturing, and others.

Shares of Tesla surged by 12% after the announcement on October 23, and opened nearly 17% higher the following day.

Here are five key takeaways from Tesla’s announcement on the 23rd:

1. **Strong Financial Performance**: Tesla reported a quarterly revenue increase of 8% year-over-year, totaling $25.18 billion, just shy of market expectations. More importantly, net income rose by 17% to $2.17 billion, with adjusted earnings per share hitting $0.72, significantly higher than analysts’ forecasts, marking an end to four consecutive quarters of profit declines. Gross margin also improved by 1.9 percentage points to 19.8%, well above the projected 16.8%.

2. **Continuous Delivery Growth**: Despite challenging economic conditions, Tesla anticipates modest growth in vehicle deliveries for 2024. CEO Elon Musk suggested that he expects delivery growth between 20% to 30% next year, attributable to lower-cost models and advancements in self-driving technology.

3. **Affordable Vehicle Production Plans**: Tesla confirmed that it is on track to begin producing more affordable vehicles in the first half of 2025. Musk mentioned that with U.S. government incentives, these models could potentially be priced under $30,000.

4. **Progress on Cybercab and Autonomous Taxi Plans**: Tesla is progressing with its Cybercab and autonomous taxi initiatives, with plans to begin production in 2026. Musk stated their ultimate goal is to produce 2 million Cybercabs annually, with a potential capacity of up to 4 million, launching driverless ride-hailing services in Texas and California by 2025.

5. **Cybertruck’s First Profit and Semi Production**: The Cybertruck, which started deliveries last year, has reported its first profit and is now the third best-selling electric vehicle in the U.S., following the Model Y and Model 3. Additionally, the Semi electric truck is set to begin production by the end of next year.