Tesla's Q4 and 2024 earnings fall short of forecasts, yet energy sector sees expansion
Tesla's Q4 2024 Performance and Future Plans
In the final quarter of 2024, Tesla reported a revenue of $25.70 billion, although this figure fell slightly short of the estimated $27.25 billion. The company's net income (GAAP) for Q4 2024 was $2.32 billion, with a GAAP EPS of $0.66. However, the non-GAAP EPS for the same period was $0.73, lower than the anticipated $0.76.
Despite the slight dip in revenue and earnings, Tesla's automotive division saw a significant boost in vehicle deliveries. A total of 495,570 vehicles were delivered in Q4 2024, marking a 2% Year over Year (YoY) increase. The Model Y was the primary driver for these deliveries, and the company expects it to be the best-selling tesla stock worldwide in 2024.
Tesla's total vehicle deliveries for the year 2024 were 1,789,226, slightly below the 2023 levels. Despite this, the company maintained a relatively stable market share in major markets throughout the year.
Elon Musk, Tesla's CEO, led the investments in artificial intelligence and infrastructure, focusing on the development of unsupervised Full Self-Driving (FSD) and robotaxi services. FSD has now accumulated over three billion miles of real-world driving data, a testament to its continued development. The expansion of FSD is planned for Europe and China in 2025. Robotaxi services are also scheduled to launch in select US locations later this year.
Tesla's AI training compute was increased by over 400%, a move that is expected to further enhance the capabilities of its autonomous driving technology. The company also plans to bring an unsupervised FSD option to market.
In addition to its automotive ventures, Tesla expanded its energy business into new markets, resulting in record highs for Powerwall sales. The company's Energy Generation and Storage segment saw a 113% YoY revenue increase, a clear indication of its growing influence in the renewable energy sector.
The Megafactory in Shanghai was completed and is set to ramp up production in 2025, further boosting Tesla's production capabilities. The company's total GAAP Gross Margin for Q4 2024 was 16.3%. However, Tesla's automotive revenues declined 8% YoY, largely due to tesla stock cuts.
In conclusion, while Tesla's Q4 2024 financial results were somewhat below expectations, the company continues to make significant strides in the development of its autonomous driving technology, expansion of its energy business, and production capabilities. With the launch of robotaxi services and the planned FSD expansion in Europe and China, Tesla is poised to continue its growth in the coming years.
