Tesla, Inc. stock research
FY2024 Q3
Tesla (TSLA) Gross Margin — Quarter Ended Sep 30, 2024
Revenue decreased relative to the prior quarter but increased compared to the same quarter last year. Gross profit and gross margin both improved on a sequential and year-over-year basis, driven by a larger reduction in cost of revenue relative to the change in revenue.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue decreased relative to the prior quarter but increased compared to the same quarter last year. Gross profit and gross margin both improved on a sequential and year-over-year basis, driven by a larger reduction in cost of revenue relative to the change in revenue.
- The most significant observable driver was the decline in cost of revenue, which fell more than the modest decrease in revenue, resulting in a higher gross profit and expanded gross margin.
- Compared to the immediately preceding quarter, revenue was slightly lower while gross profit was higher, leading to an improved gross margin. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
19.8%
Gross profit
$5.0B
Revenue
$25.2B
Cost of revenue
$20.2B
Quarter-over-quarter change
+1.9 pts
Year-over-year change
+2.0 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Dec 31, 2023 | $25.2B | $4.4B | $20.7B | 17.6% |
| Mar 31, 2024 | $21.3B | $3.7B | $17.6B | 17.4% |
| Jun 30, 2024 | $25.5B | $4.6B | $20.9B | 18.0% |
| Sep 30, 2024 | $25.2B | $5.0B | $20.2B | 19.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+1.9 pts
Year-over-year change
Sep 30, 2023
+2.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most significant observable driver was the decline in cost of revenue, which fell more than the modest decrease in revenue, resulting in a higher gross profit and expanded gross margin.
Compared to the immediately preceding quarter, revenue was slightly lower while gross profit was higher, leading to an improved gross margin. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all higher.
Monitor the trajectory of cost of revenue, as its trend relative to revenue will continue to influence gross margin.