Tesla (TSLA) Q2 2024 earnings summary

Executive summary

• Achieved record quarterly revenues of $25.5B in Q2 2024, driven by energy storage growth and a rebound in vehicle deliveries, despite a challenging environment and a 45% drop in net income to $1.48B.

• Automotive deliveries grew sequentially, supported by competitive financing, but overall automotive revenue declined 7–9% year-over-year due to lower average selling prices and reduced Model 3/Y deliveries, partially offset by Cybertruck ramp.

• Energy generation and storage revenue doubled year-over-year to $3.0B, with record deployments and gross profit, and Megapack and Powerwall achieving record results.

• Significant progress in Full Self-Driving (FSD) technology, with Version 12.5 rollout and price reductions, and Optimus humanoid robot limited production to start early next year, with broader rollout in 2026.

• Focus remains on cost reduction, expanding AI-enabled products, and preparing for next-gen vehicles and Robotaxi, with unveil event postponed to October 10.

Financial highlights

• Total revenue rose 2% year-over-year to $25.5B in Q2 2024, with record regulatory credit revenues and energy storage growth.

• GAAP net income was $1.48B, down 45% year-over-year; non-GAAP net income was $1.8B; operating income was $1.6B after $583M–$642M in restructuring charges.

• Operating margin was 6.3%, down from 9.6% year-over-year; GAAP gross margin was 18.0%.

• Free cash flow was $1.3B, with cash and investments at quarter-end of $30.7B, up $1.63B–$3.9B sequentially.

• Automotive revenue declined 7–9% year-over-year, while energy generation and storage revenue doubled.

Outlook and guidance

• Capital expenditures expected to exceed $10B in 2024 and be $8–10B in each of the next two years.

• New, more affordable vehicles on track for production start in H1 2025, with next-gen vehicles to be produced on existing lines for capex efficiency.

• Energy storage deployments and revenue growth rates projected to outpace automotive in 2024, with Megafactories ramping output.

• Management expects continued self-funding as long as macroeconomic trends support sales.

• FSD adoption rates increasing after price revision, expected to drive future vehicle sales.