Tesla Inc
Q2 2024 Earnings
Did TSLA Beat Earnings? Q2 2024 Results
Tesla delivered a mixed second quarter for 2024, posting revenue of $25.50 billion, up 2.3% year over year and edging past the $24.77 billion consensus estimate by 2.94%, yet falling short on the bottom line where earnings per share of $0.52 missed the $0.62 analyst expectation by 16.13%. The profitability shortfall reflected a sharp deterioration in margins, with GAAP operating income tumbling 33% year over year to $1.60 billion as restructuring charges of $622 million, lower average selling prices across the Model 3 and Y lineup, and heavy investment in AI infrastructure weighed on results. A bright spot was the Energy Generation and Storage segment, which doubled revenue to $3.01 billion on 158% growth in deployments. Looking ahead, Tesla acknowledged it sits between two major growth waves, with vehicle volume growth in 2024 expected to trail 2023's pace, while more affordable new models targeting a first-half 2025 production start and a robotaxi unveiling on the horizon offer investors a longer-term growth thesis to weigh against near-term margin pressure.
- Energy Generation and Storage revenue doubled YoY to record levels with 9.4 GWh of deployments
- Record regulatory credit revenue of $890M as other OEMs lag on emissions requirements
- Sequential rebound in vehicle deliveries driven by improved consumer sentiment and attractive financing options
- Cybertruck production more than tripled sequentially, became best-selling EV pickup in the U.S.
- Lower cost per vehicle including lower raw material costs, freight and duties
- Inventory decreased by $1.8B sequentially, aiding free cash flow recovery
Forward Guidance & Outlook
Tesla expects 2024 vehicle volume growth rate to be notably lower than 2023 as teams work on next-generation vehicle and other product launches. Energy storage deployment and revenue growth rates are expected to outpace the Automotive business in 2024. New more affordable vehicle models remain on track for start of production in the first half of 2025, using a hybrid of next-gen and current platform elements produced on existing manufacturing lines, enabling capacity utilization of close to three million vehicles (more than 50% growth over 2023 production). The company expects hardware-related profits to be accompanied over time by an acceleration of AI, software and fleet-based profits. Cybertruck remains on track to achieve profitability by end of year. Semi factory preparation continues with production expected to begin by end of 2025. Shanghai Megafactory is on track for Q1 2025 production start. The purpose-built Robotaxi product will pursue an 'unboxed' manufacturing strategy, with deployment timing dependent on technological advancement and regulatory approval.
TSLA YoY Financials
TSLA Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.