Tesla ended 2024 on a high note, achieving record-breaking vehicle deliveries and significant growth in energy storage deployments despite economic challenges and increased operational costs. The company’s Q4 earnings report, released after the market closed, revealed a net income of $2.3 billion for the quarter and a full-year profit of $7.1 billion.
Earnings per share (EPS) for Q4 were reported at $0.66 (GAAP) and $0.73 (non-GAAP), reflecting the impact of lower vehicle prices and increased investments in AI and infrastructure. The full-year EPS stood at $2.04 (GAAP) and $2.42 (non-GAAP), with a decline in profitability driven by price reductions on vehicles, higher research and development expenses, and continued expansion in AI and manufacturing capabilities.
Tesla’s cash and investments increased by $7.5 billion in 2024, reaching a total of $36.6 billion by year-end, supported by $14.9 billion in operating cash flow for the year. Despite the challenges faced, Tesla remains financially strong and poised for expansion in 2025.
In terms of financial highlights for Q4 and 2024, Tesla delivered 495,570 vehicles in Q4, marking a 2% increase year-over-year and totaling 1.79 million deliveries for the year. Revenue for Q4 reached $25.7 billion, with a full-year revenue of $97.7 billion. The company reported a GAAP operating income of $7.1 billion for the year, with $1.6 billion in Q4, although the operating margin declined to 6.2% in Q4 due to lower vehicle prices and increased investments in AI and R&D.
Tesla’s energy storage business experienced significant growth, deploying 11.0 GWh in Q4, resulting in a record gross profit for the sector. The company also generated $2 billion in free cash flow in Q4 and finished the year with $36.6 billion in cash and investments, ensuring strong liquidity for future expansion.
Looking ahead to 2025, Tesla has several major projects in the pipeline. The Model Y remains the world’s best-selling vehicle, with production and deliveries reaching 1.7 million units in 2024. The company plans to launch its Robotaxi service in select U.S. cities later in the year, expand FSD to Europe and China, introduce more affordable EV models, ramp up Cybertruck and Semi production, and grow its AI and energy storage businesses significantly.
While Tesla faces challenges such as fluctuating raw material costs, pricing pressures, and regulatory hurdles in key markets, the company is focused on maintaining its competitive edge through cost-efficient manufacturing, software innovation, and advancements in AI technology. With a strong financial position and a clear roadmap for future growth, Tesla is poised to continue leading the way in the electric vehicle industry.