FYI: Tesla reports a strong second quarter with $25.5 billion in total revenue and $1.6 billion in GAAP operating income, bolstered by significant strides in EV and energy products.
Tesla (NASDAQ: TSLA) has just released its Q2 2024 Update Letter, presenting a solid performance in its latest earnings report following the close of trading on July 23, 2024. The electric vehicle and clean energy pioneer recorded total revenues of $25.5 billion, including automotive revenues totaling $19.878 billion for the quarter. The company also posted non-GAAP earnings per share of $0.52 and GAAP earnings per share of $0.42. After accounting for $600 million in restructuring charges, Tesla achieved $1.6 billion in GAAP operating income for the period.
Live Updates from Tesla’s Q2 2024 Earnings Call
From insightful perspectives on Tesla’s advancements to the CEO’s reflections on the company’s future, here are the highlights from the event, presented in chronological order.
17:30 CDT: Conclusion
Thank you for joining our live coverage of Tesla’s Q2 2024 earnings call. Stay tuned for more updates next quarter!
17:27 CDT: Implications of a Potential Trump Presidency
An analyst queries Elon Musk about the potential impacts of a future Trump presidency on the Inflation Reduction Act (IRA). Musk suggests that while the repeal of the IRA could have some effect, it would be significantly more detrimental to Tesla’s competitors. He continues to emphasize Tesla’s focus on autonomy as a critical value driver, advising investors skeptical of full self-driving (FSD) to sell their shares.
17:18 CDT: Ride-Sharing Platform Insights
Musk elaborates on Tesla’s ride-sharing platform, highlighting its unique features that allow vehicles to operate continuously. Owners can opt to share revenue with Tesla, enabling part-time or full-time fleet contributions.
17:14 CDT: Discussion on Robotaxi Rollout
Responding to questions about the initial rollout of Robotaxi possibly being geofenced and limited in scale, Musk asserts that every vehicle will be equipped with the necessary capabilities.
17:12 CDT: FSD Launch in China and Europe
Musk announces that supervised FSD will be available in China, Europe, and other countries with the release of version 12.6, pending regulatory approvals.
17:04 CDT: FSD Licensing Mechanics
Alex Potter from Piper Sandler inquires about the implementation details of FSD licensing. Musk confirms that OEMs would need to upgrade hardware, including cameras and connectivity components. It will be several years before this is seen in volume.
16:59 CDT: AI’s Impact on Revenue
Ben Kallo from Baird questions AI’s role in automotive revenue balance. Musk emphasizes that Optimus, Tesla’s humanoid robot, is projected to be a major revenue driver, potentially eclipsing all other business segments combined.
16:58 CDT: Gigafactory Mexico Status
Due to electoral uncertainties, Gigafactory Mexico’s progress is paused, with a strategic focus on ramping up production at existing facilities.
16:53 CDT: Integration of Grok into Tesla Vehicles
Musk hints that the company’s advanced AI, Grok, may be integrated into Tesla vehicles in the future.
16:52 CDT: Advertising Philosophy
Addressing whether Tesla might be depriving potential customers of joy by not advertising, Musk notes a significant increase in new buyer deliveries, indicating strong word-of-mouth growth.
16:51 CDT: Humorous Q&A on Optimus Accessories
Questions about accessories for Optimus draw laughter from Musk but no substantial updates are provided.
16:49 CDT: Competition with NVIDIA and Dojo Update
Discussing the demand for high-performance GPUs, Musk praises NVIDIA but emphasizes Tesla’s commitment to advancing its own Dojo system to meet training needs and compete in the market.
16:47 CDT: 4680 Cell Production Ramp-Up
Tesla has amped up 4680 cell production by 51% compared to Q1. The company is producing cells sufficient for over 1,400 Cybertrucks weekly and aims to implement a cost-reducing dry-cathode process in Q4.
16:42 CDT: Tesla’s Competitive Financing
The CFO highlights Tesla’s highly competitive global finance rates, encouraging immediate vehicle purchases, emphasizing Tesla’s American-made credentials, and underlining the focus on delivering compelling products at competitive prices.
16:39 CDT: Robotaxi and Optimus Updates
Musk announces the delayed unveiling of the Tesla Robotaxi to October 20 due to requested changes. He also predicts significant growth for Tesla Energy, expecting multiple new humanoid robots operating in Tesla facilities by next year.
16:35 CDT: Elon Musk’s Opening Remarks
Musk acknowledges growing competition in the EV market and competitor price cuts. Despite challenges, Tesla set record revenues, and a more affordable model is anticipated in the first half of 2025. Musk also praises FSD’s progress, highlighting its future market impact.
16:30 CDT: Tesla’s Q2 2024 Earnings Call Commencement
With the call starting punctually, Tesla’s new IR head introduces Musk and other key executives.
16:26 CDT: Prelude
The anticipation builds as the call’s start draws near, accompanied by background music.
16:20 CDT: Stock Performance
Tesla shares have dropped by 4.27%, a more modest decline compared to previous quarters, reflecting a certain market resilience.
16:15 CDT: Initial Context
Launching our coverage, Tesla’s Q2 2024 results were mixed—beating revenue estimates but missing earnings expectations. The earnings call offers a platform for Musk and his team to elucidate these results.
Conclusion
The Q2 2024 earnings call underscores Tesla’s robust performance amid market challenges and competitive pressures. With optimistic projections for AI, FSD, and energy products, Tesla continues to solidify its leadership position in the EV industry.
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William Kouch, Editor of Automotive.fyi
