Tesla announced its earnings for Q4 2024 on Wednesday (Thursday AEDT), falling short of market expectations.
The company reported a record 495,000 vehicles delivered and 1.79 million vehicles sold for the full year.
Revenue: In 2024, Tesla’s total revenue was US$97.6 billion (A$156.6 billion), a 1% YoY increase. For Q4 2024, its total revenue was US$25.7 billion, showing a 2% YoY increase from Q4 2023. This was lower than the 8.1% YoY increase the markets expected.
The Q4 YoY revenue increase was impacted by growth in energy generation and storage and other, growth in vehicle deliveries, higher regulatory credit and reduced S3XY vehicle average selling price (ASP) (excl. FX impact1), due to pricing, attractive financing options and mix.
Earnings Per Share (EPS): EPS was down 22% for 2024 at US$2.42 but experienced a 3% YoY increase from Q4 2023 (US$0.72) in Q4 2024 (US$0.73). This is still a lower growth margin than predicted.
Margin: Tesla's operating income decreased 23% YoY to US$1.6 billion in Q4, resulting in a 6.2% operating margin.
This was impacted by increased operating driven by AI and other R&D projects, lower cost per vehicle and higher regulatory credit revenue.
Looking ahead into the future, Tesla is hoping to integrate more AI into its products.
Plans for more new vehicles, including more affordable models, that utilise aspects of the new generation platform and aspects of the current platforms remain on track for production in the first half of 2025, according to Tesla, this should allow for more than 60% growth over 2024 production before investing in new manufacturing lines.
At the time of writing, Tesla (NASDAQ: TSLA) stock was trading at US$408.25, up 4.9% from Wednesday's close of $389.1. The stock reached a day low of $384.48 and a day high of $406.69. Tesla's market cap stands at US$1.25 trillion.