Tesla is an American electric vehicle and clean energy company based in Palo Alto, California. Founded in 2003 by Martin Eberhard and Marc Tarpenning, Tesla is led by CEO Elon Musk, who joined shortly after. Tesla specializes in electric vehicles, battery energy storage from home to grid scale, solar panels, and solar roof tiles.
The company’s mission is to accelerate the world’s transition to sustainable energy. Tesla’s product lineup includes the Model S, Model 3, Model X, Model Y, Cybertruck, and the Roadster, along with energy products like the Powerwall, Powerpack, and Megapack. The company continues to push the boundaries of technology and innovation, aiming to make renewable energy accessible and sustainable for all.
Tesla Fiscal Q4 2024
Tesla (TSLA) reported a GAAP operating income of $7.1 billion for 2024, including $1.6 billion in Q4.
Despite an EPS of $0.73 falling below estimates, the company achieved a revenue of $25.7 billion, surpassing expectations. Q4 marked a record quarter for both vehicle deliveries and energy storage deployments.
Earning Highlights
- GAAP net income was also $7.1 billion for the year, including a $0.6 billion mark-to-market gain on digital assets in Q4.
- Non-GAAP net income reached $8.4 billion for 2024, with $2.6 billion in Q4.
- The Model Y is to be the best-selling vehicle globally for the full year 2024, with significant improvements and launches in all markets.
- Operating cash flow was $14.9 billion in 2024, with $4.8 billion in Q4.
- Free cash flow was $3.6 billion for the year, with $2.0 billion in Q4.
- Tesla’s cash and investments increased by $7.5 billion, reaching $36.6 billion by the end of 2024.
In Q4 2024, Tesla achieved an all-time low average cost of goods sold (COGS) per vehicle, reaching approximately $32,500. This significant reduction in COGS reflects Tesla’s continuous efforts to improve cost efficiency and streamline production processes.
Energy Business:
- The energy business achieved record gross profit in Q4. The Megafactory Shanghai construction was completed in December and is set to ramp up. Powerwall deployments also reached a new record.
Operations:
- AI training compute increased by over 400% in 2024.
- Over three billion miles were driven cumulatively on FSD (Supervised) as of January.
- Construction of Megafactory Shanghai was completed.
Tesla made substantial investments in infrastructure in 2024, focusing on vehicle manufacturing for new models, AI training compute, and energy storage capacity.
Outlook of 2025:
Tesla is optimistic about 2025. They plan to launch more affordable electric cars in the first half of the year to attract more customers. By June 2025, Tesla will test a paid self-driving car service in Austin, Texas, and expand it to other states later.
2025 is poised to be a pivotal year for Tesla as FSD (Supervised) continues to improve, aiming to exceed human safety levels. This will eventually lead to the launch of unsupervised FSD and the Robotaxi business in parts of the U.S. later this year, with plans to expand FSD (Supervised) in Europe and China in 2025.
The company’s investments in AI and robotics are expected to bring significant benefits, helping Tesla grow further. CEO Elon Musk believes these efforts will lead to excellent years in 2026 and beyond.
Board Statements
Tesla CEO Elon Musk told investors that Tesla’s self-driving technology is making big progress. He mentioned that starting in June, Tesla will use the unsupervised version of this technology at their Austin, Texas factory, with a public release likely this year.
Tesla expects its vehicle sales, which dropped in 2024, to grow again this year. They also plan to start producing a more affordable model in the first half of the year, although details about the model’s appearance and cost are not yet announced.
Impact on the Stock Market
For Q4 2024, Tesla’s revenue increased by 2% to $2.57 billion compared to last year. This growth was helped by regulatory credits, which may go away under Trump’s EV mandate changes, and contributions from Energy Generation & Storage and Services. Despite this, Tesla’s stock jumped by 4.1% in pre-market trading after Elon Musk shared the company’s positive plans for 2025. Investors are excited about the new affordable electric cars and the upcoming self-driving car service in Austin, Texas.
