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.
People don’t want Swasticars? Huh.
I wouldn’t buy a Tesla even if Elon wasn’t a Nazi and a Zionist.
I can barely see how they were so popular up to now anyway. I, too, thought they were cool like 10 years ago, when they were the only real electric car (Leaf and I-Miev don’t count and we didn’t get the Bolt or Volt here, only Opel Ampera and Ampera-E, which are ultra rare). Then a couple of years later, I realized some things, in this order: 1) Tesla interiors are THE BLANDEST THING EVER, 2) Elon Musk’s been seeming increasingly weird starting with the cave diving incident, 3) Tesla quality control is absolute shite
Tesla changed the world by proving you CAN have good range and performance in an EV, but now they’re way past their prime. The Germans, Swedes, Koreans and now I believe EVEN THE CHINESE make better EVs. I have no experience with non-Tesla American EVs to comment on those, but I wouldn’t be surprised if they surpass Tesla in overall quality of vehicle in a few years too.
Service being up 30% is a bad thing for the consumer. For a vehicle that doesn’t require much at all in the way of service…
Value investing is basically dead, isn’t it? Am I crazy? How can you objectively evaluate a company’s value, notice it is undervalued, and then trade accordingly when price action does not even slightly track the company’s value?
Value investing is basically dead, isn’t it?
You’re looking at a too short time frame. The famous tulip bubble lasted for a decade, too.
I wondered that a while ago when Tesla was worth more than many other car makers combined while producing far less vehicles than any single one of them. And I remember people telling me about projections and expectations and that it’s only a matter of time until everyone drives a Tesla basically. Sounded like mass hysteria to me back then because the rest of the world won’t just sit there quietly and let Tesla have a monopoly. People bought shares because they rose rapidly in value, causing even more people to buy shares. It’s a pyramid scheme like so many things these days and people have no problem with it apparently. They love gambling and playing lottery. Value investing is too boring for them.
The investors are banking on Elon looting the Govt coffers into Tesla. I can’t deny the chances based on the other crap we are seeing.
Value investing isn’t dead. There are tons of value investors, and they aren’t the ones buying Tesla.
My point is, if this is how markets react to worsening sales and an actually insane CEO how can you trust a rational bet to pay off?
There’s value investing and there’s speculation. If Tesla can make a robot that can mop the floor, even this seemingly ridiculous valuation will look like a bargain. Have to remember, Tesla is not a car company. They are an AI and green tech company. Cars are just their largest activity to date.
I am concerned about Elon though. I think he’s a visionary, I think he’s valuable, but I also think he’s spread far too thin and he’s losing it as a result. Tesla, SpaceX, Twitter, xAI, Neuralink, and his political efficiency project. All of these are full-time 100hr/week jobs. Even if you assume he literally never sees his gaggle of children, hell even if you assume he never sleeps, there’s literally not enough hours in the day. And I think he is thus blind to the fact that his antics are costing him support for the bigger mission.
So when will he have time to play Path of Exile and Polyopia and oligarch?
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.
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.
https://fortune.com/2025/01/29/tesla-shares-rally-2025-earnings-growth/
Tesla shares rally on pledge to return to growth in 2025
Continuing the bullshit from 2022, where Musk promised a typical year would have growth of 50!!
Tesla plans to launch its autonomous ride-hailing service in Austin in June
Hows that going Elron?
“This is not some far off mythical situation,” Musk said on the company’s call with analysts. “It’s literally five months away.”
So it’s been LITERALLY running for more than a half year now? Or is it still a no show, like the 7 previous years FSD should have been here?
We can do this TODAY.
He has said that so many times, on so many things, and it’s always a lie. FSD, Convoys of trucks that are cheaper than trains! Tesla being able to park. which it still can’t do reliably. And this is the very beginning of the claim that a Tesla can drive across the country (USA) to pick you up!
Did ANYONE believe his bullshit ever, do people believe he will build a manned base on Mars eventually? A base that should have been up and running I think it was 2022!!!
How is this man not in jail?
Oh right, probably much the same way Trump is not in jail. USA is an oligarchy moving towards a fascist dictatorship!!
tessla plans to launch it’s autonomous ride hailing service
Autonomous driving, like he’s promised he already had every year for over a decade now.
Who does anyone believe this scammer? He is a con man, always had been, and I’m just amazed at the enormous amount of idiots believing his shit
So more than a third of their net profits come from selling credits they received from the government? Am I understanding that correctly?
You are. Without the EV credits, Tesla would have folded years ago.
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.
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.
Expensive luxury cars for rich people with over 30 thousand subsidy, and they will still lose money. Credits is the new Bitcoin.
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…
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.
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.
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.
“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
Net profits $2.3B. “Poor financial results”. How does one reconcile these two things?
But yeah, I live in a country that has had about 0% growth since 2008 :-| Perhaps this is bad news for you rich yankees.
Also note that the automotive industry seems to be pretty much flatlining for the last 5 years or so: https://www.vettafi.com/indexing/index/autos – so Tesla is not doing particurarily badly in the large picture.
Net profits $2.3B. “Poor financial results”. How does one reconcile these two things?
That’s 2.3B USD on a 1.29T USD valuation, or 0.17%.
Valuations should be reflective of expected future profits. Multiples of ×20 yearly profit are possible for risky (tech or biotech usually) companies, with large potential profit. But the ratio is ridiculously off the charts for tesla. If it does not improve, it will have turned out to have been a very wastefull use of capital.
