AI Summary:
Tesla’s 2024 financial results were disappointing, with several key points highlighted:
- Automotive Revenues: Fell by 8% in Q4 2024 compared to Q4 2023, totaling $19.8 billion.
- Energy and Storage Revenues: More than doubled, growing by 113% to $3 billion in Q4 2024.
- Services: Grew by 31% in Q4 2024, contributing $2.8 billion.
- Total Revenue: Increased by 2% in Q4 2024, but income fell by 23%, with an operating margin of 6.2%.
- Net Profits: Dropped by 71% to $2.3 billion in Q4 2024.
- Annual Performance: Automotive revenues decreased by 6% to $77 billion in 2024. Energy generation and storage increased by 67% to $10 billion. Services grew by 27%, bringing in $10.5 billion.
- Gross Profits: Fell by 1%, with net profits dropping by 53% to $7.1 billion for the year.
- Free Cash Flow: Decreased by 18% to $3.6 billion.
- Regulatory Credits: $2.8 billion of profit came from selling regulatory credits, not from core business activities.
- Future Predictions: Tesla expects energy storage revenues to grow by at least 50% year-over-year and aims to grow automotive sales by more than 60% in 2025.
Despite the poor financial results, Tesla’s share price increased by 103% over the same period.
If any other company dropped net profits by 71% they’d be firing their CEOs (well giving them a golden parachute to gtfo) and having some major shake ups.
Good thing musky got that big compensation package shoved through, eh?
Expensive luxury cars for rich people with over 30 thousand subsidy, and they will still lose money. Credits is the new Bitcoin.
pop?
Net Profits: Dropped by 71% to $2.3 billion in Q4 2024.
Since when 2.4 billion net profit is terrible?
“Yes, we earned billions but it’s actually less than the year before!” Dude, go out and touch some grass…
Receiving $2.4 billion is nice. But not if you had to pay $1265 billion (market cap) for the privilege.
When those profits come from carbon credits which means your main activity is still wildly unsustainable over a decade after the company being founded. Tesla is a massive investor bubble and their cars are objectively trash with failure rates 3x higher than the industry’s worse. Tesla is garbage sustained by a massive collective illusion of US exceptionalism.
When you know you’re going to get a billion dollars in credits for something, you plan your business around having those billion credits.
You sell cars cheaper, you expand faster, you try new ideas you might not have tried etc.
Tesla hasn’t needed those credits for a very long time now, but if they are there, of course they’re going to take as full advantage of the situation as they can.
If the credits had stopped around when Tesla didn’t need them anymore, I’m sure they would look very different than today, but they’d still be around and profitable.
Tesla would never exist in a capitalist system. Their business model is wholly predicated on government subsidies and carbon credits. Furthermore, the hen has come home to roost and their cars, like I linked above, are just bougie expensive paper weights sold by the biggest con man in history. If I was buying electric tomorrow, I’d even look at Volkswagen before considering a Tesla. I want my cars to last more than 4y, not try to kill me, and, I don’t like to pay extra for vapoware. If anything, the fact Tesla still exists, is testament we no longer live in a capitalist system but in an oligarchy where companies selling snake oil can still have high valuation because they are close to the
N*%i Partyparty in power. Looking at Teslas’s results and seeing the carbon credit weight on their fundamentals and looking at the speed BYD is expanding, only Authoritarianism can save them from bankruptcy already in 2025. Luckily, their CEO just helped bring about the 4th reich, so they are fine, just don’t pretend it’s because it’s a solid enterprise, it’s anything but.Tesla would never exist in a capitalist system.
This is a capitalist system. You might be referring to a free-market system, but those are rare and short-lived. Almost every capitalist system has subsidies, back-handers, state-protected monopolies and oligopolies, corruption, dirigiste policies, regulatory capture, and so forth. You can claim that none of it is capitalism, but it occurs in the only capitalist systems that exist in real life, so I suggest that you’re confusing “should” and “is.”
It’s bad because downward trends are bad, especially when the economy is growing.
Look at it this way: suppose you have a job with a decent salary. Your supervisor calls you in and says, “Well, looks like we’re going to cut your pay next year”. You ask, “Is the company in trouble? Is everyone getting a pay cut?” And they answer, “No, the company is growing. Most people are getting raises. Not you, though.”
That’s a bad sign.
It’s bad because the company is bad and they should collapse, not continue on.
You just glossed right over the “dropped by 71%” bit…since when is that not terrible? That’s an incredible decrease in profits over the course of just 12 months.
71% drop in a single quarter is time for workers to start looking for other jobs bad. This was way before Elon’s Nazi salute so expect things to get way worse. I’d be so embarrassed if I drove a Tesla.
It’s terrible for the stock price which has a price to earnings ratio of almost 200.
If this were a normal company with a profit margin of ~6% and a normal stock price (in line with the market average), it would be fine.
Since when 2.4 billion net profit is terrible?
Since Musk claimed in 2022 that a 50% growth per year would be normal for Tesla. And people are stupid enough to partially believe him. In January 2024 Musk promised 2024 would be a HUGE growth year, with autonomous RoboTaxi being launched in June. He claimed it’s LITERALLY only 5 months away!!!
https://fortune.com/2025/01/29/tesla-shares-rally-2025-earnings-growth/
Tesla Inc. revealed plans to begin robotaxi operations and forecast a sales recovery this year, fueling what Elon Musk predicted would be an “epic” period of growth for the electric vehicle maker.
Nothing he claimed or promised has come true. Quite the opposite.
“Terrible” is just for attention, but the bit of news that would have cratered any other company’s stock it that it’s down 71% YOY. Plus:
Regulatory Credits: $2.8 billion of profit came from selling regulatory credits, not from core business activities.
People in the current administration have said they plan to end these credits in the coming months. Without them in 2024 Tesla would have reported a $500million loss for the year.
every other car manufacturer would kill for a deficit of only 500 mill for the year
And every other car manufacturer has valuation multiples 12x lower than Tesla’s. Musk’s worst nightmare is investors treating Tesla like a car company. That’s why he keeps pushing on “Tesla is an AI company that makes cars, not a car company.”
Oh Yeah I completely agree, apparently everyone is super touchy with everything elon and couldn’t take the joke.
Source on the killing of credits?
Those are California ZEV credits, and other similar non USA programs.
They’re going to kill a lot of other things, but haven’t heard about that yet.
This one is paywalled, but if you hit the firefox reader mode button quick enough you can bypass BI’s content blocker.
Just on mobile now so can’t read it all, but it did get the gist across, thanks! I hadnt seen that yet.
I still think they’d have to win a lawsuit against California saying California can’t have the program?
Edit: as in I don’t think they can just scrap it like he’s scrapping other things via executive order.
You misread the sheet slightly. The total profit for the year was $7.1 billion, of which $2.8 billion was renewable energy credits. I.e. their profit would have only been $4.3 billion.
aims to grow automotive sales by more than 60% in 2025.
I think this is being reported incorrectly in a lot of places.
They said the new vehicles they’re launching in H1 2025 will allow them to grow 60% to the 3 million capacity they have.
They did not say in 2025, but it looked like it could be interpreted as 2025 without saying it.
I think this is being reported incorrectly in a lot of places.
Elon Musk said his team expects “an epic end of year” for the company as it aims to maintain its 50% annualized growth rate.
I don’t think you are aware how crazy Musk’s promises are.
it’s ok, the president will make some rediculous executive order like “all federal vehicles must be tesla”, then do no price haggling or something and it’ll pull him right out of that bind.
Sadly I don’t think I’m joking.
Credits aside, these dont seem like bad numbers when compared to spend/investment. Tesla management got what they wanted.
You can’t base their company value on the stock market … you base it on how much power and influence they have over government.
And judging by the amount of stupidly arranged love affair they are having with the government … they should be very highly valued.
No, you base company value on its current and future earnings.
All that government influence is useless if people stop buying your products. And it turns out lots of people don’t want to buy products associated with Musk.
Not in this world.
People will be pushed to buy the products. Patriotism, xenophobia, lies, economic fear and tariffs, straight up government manipulation and collusion.
That’s the value Elon has, Zuck is jealous of, Tesla and the shareholders will benefit from, and the people allow.
I’m sure that Musk hopes that “people will be pushed to buy” his products.
But so far, that plan isn’t working. In fact it’s backfiring, people are running away from his products.
Good.
People don’t want Swasticars? Huh.
You know you fucked up when you made it so people hear nazi car and think of your company and not the car company founded by the nazi government
Neat.
Ah so only the unverifiable services that don’t require an easily trackable commodity did well.
I wish I could make up income too.
i guess time to short it? seems like a bubble
The problem is that it has been a bubble for most of its public trading existence. It was highly overvalued 10 years ago, the stock price has never made sense, so who knows when it will finally correct.
All it needs is a couple of opportunistic fuckers to take advantage of chaos and that shit will plummet like a fucking rock.
This is the reason they’re legislating against all the Chinese EVs that are 90% as good for 40% of the price.
A brand new 12-15k electric car from a competitor would evaporate Tesla’s bubble so quick.
Bill Gates is famously shorting TSLA (1)
That’s ok, I’m sure a big government bailout is on the horizon for JUST the struggling, American EV auto maker, because their CEO sucked the president’s dick the best.
They have $3.6B in free cash flow. This is just a decrease from last year, which was a record, to this year, a year in which new car sales outside of China are massively down everywhere.
Teslas are objectively trash. 1 out of 3 model 3s didn’t pass the mandatory inspection in Denmark 4y after purchase which results in tje cars becoming very expensive paper weights given how expensive it is to repair the modal issues. I’m amazed these data weren’t more divulged by media since they come from the Danish state.
Also remember that Tesla owns I think just shy of 10K Bitcoins that actually allowed its numbers this quarter by $600 million. And the way Trump has his minions pulling all crypto regulations look for Tesla to exploit it to the max going forward. Maybe they’ll even buy some $TRUMP coins and announce $ELON coins for foreign entities looking to launder money destined for the White House.
Again, more reason for baby musk to cry at baby trump about how it isn’t fair and he NEEEDS American tax dollars to fight the China EV invasion.
Ah, but you’ve forgotten the real money maker.
- Having full control over the regulatory authority that currently prevents him putting his automated deathtrap taxis on the roads
Turns out it’s much cheaper to buy governments than it is to perfect self driving technology.
He probably needs all the H1B visas for his remote taxi drivers. I doubt the latency would be good enough otherwise. And it was clear in the ‘demo’ the pilot was just standing right there controlling it.
I doubt latency would be an issue.
More the fact that they’ll be juggling too many at once.
Yeah but then it’s not teslas fault. That employee didn’t do their job and can be fired
