Tesla (TSLA) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 vehicle deliveries and energy storage deployments, with Model Y as the best-selling vehicle globally in 2024.

• FY 2024 GAAP net income was $7.1B, with Q4 at $2.3B, including a $600 million mark-to-market gain on digital assets.

• Significant investments made in manufacturing, AI, robotics, and energy storage capacity, laying groundwork for future growth in autonomy and humanoid robots.

• Inventory levels reduced to the lowest in two years through attractive financing and discount programs, impacting average selling prices.

• Construction of Megafactory Shanghai completed, with ramping to begin in Q1 2025.

Financial highlights

• Automotive margin declined quarter-over-quarter due to lower ASPs and prior FSD revenue recognition.

• Cost per car dropped below $35,000, mainly from material cost reductions, despite higher depreciation.

• Free cash flow for Q4 was $2 billion; full-year free cash flow reached $3.6 billion despite increased CapEx.

• FY 2024 total revenue grew 1% year-over-year to $97.7B; Q4 revenue rose 2% year-over-year to $25.7B.

• Cash and investments increased by $7.5B in 2024 to $36.6B at year-end.

Outlook and guidance

• 2025 expected to be pivotal, with the launch of unsupervised Full Self-Driving (FSD) in Austin in June and expansion to other U.S. cities.

• New affordable models and Model Y production to begin at all factories in H1 2025, with several weeks of lost production expected during the changeover.

• At least 50% year-over-year growth in energy storage deployments anticipated for 2025.

• Robotaxi (Cybercab) volume production scheduled for 2026, with business launching in parts of the U.S. later in 2025.

• CapEx for 2025 expected to remain flat year-over-year, with sufficient liquidity to fund expansion.