• Tue. Apr 30th, 2024

Tesla Q1 2024 Earnings Overview

ByPeter Thiel

Apr 25, 2024 #tesla
tesla model 3

Tesla’s first quarter of 2024 showcased a strong financial performance despite challenges in vehicle deliveries. The company reported a significant increase in revenues, totaling $23.329 billion, marking a 24% year-over-year growth. This figure, while impressive, slightly missed the anticipated consensus of $23.472 billion​​.

Production and Delivery Insights

During Q1 2024, Tesla produced over 433,000 vehicles and delivered approximately 387,000. These numbers fell short of expectations due to a combination of factors, including logistical disruptions caused by global events and operational challenges at their factories. Notably, the early phase of the production ramp of the updated Model 3 at the Fremont Factory and disruptions from the Red Sea conflict and an arson attack at the Gigafactory Berlin impacted Tesla’s output​ (teslarati)​.

Financial Metrics and Market Response

Tesla’s earnings per share (EPS) were reported at 85 cents, down from the previous year’s 1.07 cents but still exceeding expectations set at 83 cents. This marked the ninth consecutive quarter that Tesla has surpassed earnings estimates​ (finance.yahoo)​. Tesla’s overall gross margin stood at 19.3%, with an operating margin of 11.4%​ ​.

Strategic Developments

In addition to financials, Tesla highlighted progress in other strategic areas. The company gave a glimpse of its Robotaxi-powered ride-hailing service, indicating a potential future expansion into new business verticals. Moreover, the Tesla Optimus humanoid robot is on track to potentially start selling externally by 2025, signaling ongoing advancements in their AI and robotics initiatives​.

Tesla’s leadership remains optimistic about future growth, reaffirming their target of approximately 50% growth in vehicle deliveries in the coming years​​. This forward-looking stance, coupled with Tesla’s consistent track record of beating earnings expectations, positions the company as a resilient player in the evolving automotive and technology landscapes.