Tesla reported a modest 1% increase in total revenue for 2024, reaching $97.7 billion, as the electric vehicle maker faced slowing growth in its core automotive business. The company’s expansion was primarily driven by a surge in energy and service revenues, offsetting a decline in vehicle-related earnings.
Total automotive revenue fell 6% year-over-year to $77.1 billion, marking the first time since 2020 that Tesla reported lower vehicle revenue compared to the previous year. In contrast, the company’s energy business grew by 67% to $10.1 billion, while service and other revenues rose 27% to $10.5 billion. Tesla’s net profit for the year stood at $17.45 billion, slightly down from $17.7 billion in 2023 and well below the $20.85 billion recorded in 2022.
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Q4 & FY 2024 Earnings Call at 4:30pm CT today https://t.co/uFCg69a6tN
— Tesla (@Tesla) January 29, 2025
The decline in Tesla’s vehicle business was attributed to intensifying price competition, particularly in China, and disruptions in production earlier in the year. The company’s operating margin dropped to 7.2% in 2024, down from 9.2% in 2023 and significantly lower than 16.8% in 2022. Production was also affected by supply chain constraints caused by disruptions in the Red Sea and an arson attack at its Berlin Gigafactory.
Despite challenges, Tesla remained optimistic about future growth, pointing to its planned expansion in vehicle manufacturing, artificial intelligence, and energy storage. “In 2024, we made significant investments in infrastructure that will spur the next wave of growth for the company, including vehicle manufacturing capabilities for new models, AI training compute, and energy storage manufacturing capacity,” the company stated in its earnings report.
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Q4 & Full Year 2024 Shareholder Update → https://t.co/sXBSeLibSL
Highlights
– We expect Model Y to become the world’s bestselling car of any kind for the 2nd year in a row
– And it’s become even better, with the New Model Y now launched in all markets. Production will begin… pic.twitter.com/wUrnzI78QN
— Tesla (@Tesla) January 29, 2025
Tesla confirmed that production of more affordable models is set to begin in the first half of 2025, utilizing elements of both its next-generation and current platforms. The long-anticipated ‘unboxed’ manufacturing strategy, expected to drive greater cost reductions, is slated to debut with the Cybercab in 2026.
While Tesla’s vehicle deliveries fell slightly to 1.79 million units in 2024, the Model Y remained a strong performer in global markets. “In 2024, Model Y was the best-selling vehicle of any type in Denmark, Norway, Sweden, Switzerland, and the Netherlands, and we expect Model Y to have been the second-best-selling vehicle of any type in Europe,” Tesla stated.
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The company also announced progress in its artificial intelligence initiatives, including a significant expansion in AI training capabilities. Tesla expects its Full Self-Driving (FSD) software to continue evolving, with a supervised version planned for Europe and China in 2025 and a potential unsupervised version launching in select U.S. markets later this year.
Looking ahead, Tesla is targeting a return to higher production volumes, aiming to increase manufacturing capacity by 60% by 2024. The company is also ramping up its energy division, with new storage projects and Supercharger expansions set to provide additional revenue streams. Tesla’s lithium refinery, completed within 18 months of construction, has begun processing spodumene, marking a strategic step in securing battery material supply chains.