Tesla closed out 2024 with record-breaking vehicle deliveries and a surge in energy storage deployments, despite facing economic pressures and rising operational costs. That’s according to its Q4 earnings report released today after the market closed.
The company posted $2.3 billion in net income for Q4, contributing to a full-year profit of $7.1 billion.
Earnings per share (EPS) were at $0.66 (GAAP) and $0.73 (non-GAAP) for Q4 2024, reflecting the impact of lower vehicle prices and increased investments in AI and infrastructure.
For the full year, GAAP EPS was $2.04, marking a 53% decline from 2023, while non-GAAP EPS came in at $2.42, down 22% year-over-year. The decrease in profitability was driven by price reductions on its vehicles, higher research and development expenses, and continued expansion in AI and manufacturing capabilities.
Tesla also saw a $7.5 billion increase in its cash and investments, bringing its total to $36.6 billion by year-end, bolstered by $14.9 billion in operating cash flow for 2024. Despite challenges, Tesla says it remains financially strong and ready for expansion in 2025.
Q4 and 2024 Financial Highlights:
Strong Performance in Vehicle and Energy Businesses
Tesla’s Model Y remained the world’s best-selling vehicle in 2024, with production and deliveries reaching 1.7 million units globally. The new Model Y was introduced across all markets, bringing improved features and efficiency. Tesla says it expects Model Y to repeat as the world’s best-selling car in 2025. Deliveries to all regions will take place in Q1.
In the energy sector, Tesla’s Megafactory in Shanghai completed construction in December, set to ramp up operations in early 2025. Powerwall 3 production has increased, allowing Tesla to meet rising global demand for residential and commercial energy storage.
Tesla’s Supercharger network also saw a 19% expansion, adding over 10,000 new stalls in 2024, with new V4 Superchargers capable of 500kW charging.
Tesla is looking ahead to 2025 as a pivotal year, with several major projects in the pipeline:
Full Self-Driving (FSD) & Robotaxi Launch
Tesla aims to improve FSD (Supervised) beyond human-level safety, which could pave the way for unsupervised autonomous driving. The company plans to launch its Robotaxi service later in 2025 in select U.S. cities. Work is also underway to expand FSD to Europe and China.
Affordable EV Models on the Way
Tesla confirmed that new, more affordable models will go into production in the first half of 2025. These vehicles will be built using elements from Tesla’s next-gen platform, but also share production lines with existing models to keep costs down. While Tesla initially targeted greater cost reductions, it now plans to prioritize efficiency while expanding production capacity.
Cybertruck and Semi Production Expansion
The Cybertruck is now in production, with deliveries increasing in 2025. Tesla also expects the Tesla Semi factory to start production later in the year, with volume ramping up in early 2026.
AI and Energy Storage Growth
Tesla’s AI and software revenues are expected to grow significantly, contributing more to its overall profitability. The energy storage business is projected to expand by at least 50% in 2025, as Tesla continues ramping up Megapack and Powerwall production.
Challenges Ahead
Despite Tesla’s strong position, the company faces macroeconomic uncertainties, including fluctuating raw material costs, pricing pressures, and regulatory hurdles in key markets like China and Europe. Also, growing competition from legacy automakers and emerging EV brands means Tesla will need to stay ahead with cost-efficient manufacturing, software innovation, and AI advancements.
