Tesla reported improved results for the second quarter of 2024 after a challenging first quarter, although both turnover and earnings were lower compared to the same period in 2023. Turnover slightly exceeded expectations, and earnings showed an increase from the beginning of the year, but the company faces potential challenges ahead.
Tesla’s turnover for Q2 2024 reached $25.5 billion, while earnings totaled $1.48 billion. These figures reflect a slight improvement from Q1 2024, when the company reported earnings of $1.13 billion. However, they represent a 45% decrease from Q2 2023, which saw GAAP earnings of $2.7 billion.
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“Today marked another step forward in our company’s journey,” Tesla said in a statement. “With a net income attributable to common stockholders (GAAP) of $1.48 billion, we surpassed the result from Q1 2024. However, it was not enough to match the $2.7 billion GAAP earnings from the same quarter of last year – with comparable sales, mind you – instead, it is 45 per cent less.”
Tesla’s car business experienced a 7% decline in turnover, falling to $19.88 billion from $21.27 billion in Q2 2023. The service division, however, saw a 21% increase in revenue, reaching $2.6 billion. The Energy Generation and Storage division doubled its revenue, contributing $3 billion, leading to an overall revenue growth of 2%.
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In terms of profitability, Tesla achieved a margin of 5.8% in Q2, up slightly from 5.5% in Q1. The company noted benefits from lower costs per vehicle, including reductions in material, freight, and customs duties costs, as well as expected cost reductions from its own 4680 cells. However, lower sales and prices of the ‘S3XY’ models negatively impacted margins.
Tesla’s production and delivery figures for Q2 highlighted ongoing challenges. The company produced 410,831 vehicles and delivered 443,956, with the surplus in deliveries attributed to logistical delays from Q1. The company’s total production for the first half of 2024 stood at 844,202 vehicles, down 8.3% from the same period in 2023, while deliveries were down 6.6% to 830,766.
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Tesla’s market presence continues to grow, with a 12% increase in locations year-over-year to 1,286 and a 7% increase in its Mobile Service fleet to 1,896 vehicles. The number of Supercharger locations rose by 23% to 6,473, with 59,596 charging points, an increase of 24%.
The stationary energy storage business showed significant growth, with Tesla reporting 9.4 GWh of installed capacity in Q2, compared to 4.1 GWh in Q1. This growth was driven by record sales of Powerwalls and Megapacks. Tesla’s Shanghai Megafactory for stationary storage is expected to begin operations in Q1 2025, further boosting production.
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Tesla’s outlook for the remainder of the year suggests a slower growth rate compared to 2023. The company stated, “Our company is currently between two major growth waves: the first one began with the global expansion of the Model 3/Y platform and we believe the next one will be initiated by advances in autonomy and introduction of new products, including those built on our next-generation vehicle platform.”
As Tesla navigates these transitions, the company remains focused on its long-term goals. “In 2024, our vehicle volume growth rate may be notably lower than the growth rate achieved in 2023, as our teams work on the launch of the next generation vehicle and other products,” Tesla wrote.
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Despite these challenges, Tesla continues to expand its market footprint and enhance its product offerings, positioning itself for future growth.
