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Jun 30, 2024
Tesla Q2 2024 Earnings Report
Tesla achieved record quarterly revenues despite a difficult operating environment, with significant growth in the Energy Storage business and a rebound in vehicle deliveries. Progress continued for AI initiatives, and the company focused on cost reduction and future growth investments.
Key Takeaways
Tesla's Q2 2024 saw a 2% YoY increase in total revenue to $25.5 billion. GAAP operating income was $1.6 billion, and GAAP net income reached $1.5 billion. The Energy Storage business set a record with 9.4 GWh of deployments. The company is focused on cost reduction, AI development, and managing its product portfolio for long-term growth.
Total revenue increased by 2% YoY to $25.5B, driven by growth in energy storage, Cybertruck deliveries, and regulatory credits.
GAAP operating income was $1.6B after restructuring charges of $0.6B, with an operating margin of 6.3%.
Free cash flow was $1.3B, supported by operating cash flow of $3.6B and an inventory decrease of $1.8B.
Cash and investments increased by $3.9B to reach $30.7B at the end of the quarter.
Tesla
Tesla
Tesla Revenue by Segment
Revenue by Segment
Automotive Sales Revenue
CapyFin.comAutomotive Leasing Revenue
CapyFin.comRegulatory Credits Revenue
CapyFin.comEnergy & Storage Revenue
CapyFin.comServices & Other Revenue
CapyFin.com Forward Guidance
Tesla is currently between two major growth waves. In 2024, vehicle volume growth may be notably lower than in 2023. The company expects growth rates of energy storage deployments and revenue to outpace the Automotive business. Plans for new vehicles, including more affordable models, remain on track for start of production in the first half of 2025.
Positive Outlook
- Sufficient liquidity to fund product roadmap and capacity expansion.
- Expect hardware-related profits to be accompanied by AI, software, and fleet-based profits over time.
- New vehicle plans, including more affordable models, remain on track for start of production in the first half of 2025.
- Approach will result in achieving less cost reduction than previously expected but enables prudent growth.
- Should help fully utilize current expected maximum capacity of close to three million vehicles.
Challenges Ahead
- Vehicle volume growth rate may be notably lower than the growth rate achieved in 2023.
- Achieving less cost reduction than previously expected.
- Managing business during an uncertain period.
- Timing of Robotaxi deployment depends on technological advancement and regulatory approval.
- Managing product portfolio with a long-term orientation.
Revenue & Expenses
Visualization of income flow from segment revenue to net income