NASDAQ$TSLA

Tesla Motors, Inc. · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Tesla's Q1 2024 earnings were impacted by various challenges, including production disruptions and pricing pressures, but the company is focused on future growth through investments in AI and new products.

Tesla's Q1 2024 saw a revenue decline of 9% YoY to $21.3 billion, with operating income decreasing to $1.2 billion, resulting in a 5.5% operating margin. The company faced challenges including production disruptions and pricing pressures, but is investing in future growth areas such as AI infrastructure and new product development.

  • Revenue declined 9% YoY to $21.3 billion due to reduced vehicle ASP and lower deliveries.
  • Operating income decreased to $1.2 billion, resulting in a 5.5% operating margin, impacted by pricing pressures and increased operating expenses.
  • Free cash flow was negative $2.5 billion due to increased inventory and AI infrastructure capex.
  • Tesla is investing in future growth, including AI infrastructure, production capacity, and new products.

Headline financials

Total Revenue

$21.3B

Previous: $23.3B-8.7%
EPS

$0.34

Previous: $0.85-60.0%
Gross Margin

17.4%

No prior period
Operating Margin

5.5%

No prior period
Operating Cash Flow

$242M

Previous: $2.50+9679999900.0%
Capital Expenditures

$2.78B

No prior period
Free Cash Flow

-$1.64B

Previous: $441M-472.8%
Net Income

$1.13B

Previous: $2.51B-55.1%
Operating Income

$1.17B

Previous: $2.66B-56.0%
Gross Profit

$3.7B

Previous: $4.51B-18.1%
Cash & Equivalents

$11.8B

Previous: $16B-26.4%
Total Assets

$109B

Previous: $86.8B+25.8%
R&D Expense

$1.15B

No prior period
Stock-Based Comp

$524M

Previous: $418M+25.4%

Revenue & EPS history

Tesla · Revenue · Quarterly

$21.3B

Q1 2024-8.7%vs Q1 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Tesla · $23.4B total across 5 segments · Q3 2023

  • Automotive Sales
    $18.6B
  • Services & Other
    $2.17B
  • Energy & Storage
    $1.56B
  • Regulatory Credits
    $554M
  • Automotive Leasing
    $489M

Forward guidance

Tesla anticipates vehicle volume growth rate in 2024 to be notably lower than 2023 as they focus on the launch of the next-generation vehicle platform. They expect energy storage deployments and revenue growth to outpace the automotive business. Tesla has updated its future vehicle line-up to accelerate the launch of new models, utilizing aspects of the next generation platform and current platforms, to be produced on the same manufacturing lines as current vehicles. The robotaxi product will continue to pursue a revolutionary “unboxed” manufacturing strategy.

Tailwinds

  • Sufficient liquidity to fund product roadmap, long-term capacity expansion plans, and other expenses.
  • Expect hardware-related profits to be accompanied by an acceleration of AI, software, and fleet-based profits over time.
  • Accelerating the launch of new vehicle models ahead of the previously communicated start of production in the second half of 2025.
  • New vehicles will utilize aspects of the next generation platform and current platforms, enabling production on the same manufacturing lines.
  • Aiming to fully utilize current expected maximum capacity of close to three million vehicles, enabling more than 50% growth over 2023 production before investing in new manufacturing lines.

Headwinds

  • Vehicle volume growth rate in 2024 may be notably lower than the growth rate achieved in 2023.
  • Update may result in achieving less cost reduction than previously expected.
  • Global EV sales continue to be under pressure as many carmakers prioritize hybrids over EVs.
  • The biggest driver of gross profit reduction YoY was lower used vehicle profit.
  • Free cash flow was negative $2.5B

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+0.1%

Avg return

Earnings day

+2.3%

Avg return

5 days after

+2.5%

Avg return

30 days after

56%

36 / 64 earnings

Positive

+25.1%

Q1 2013

Best reaction

-14.1%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025-5.9%-3.0%+10.0%
Q1 2026+0.5%-3.0%+10.0%
Q3 2025+3.6%+4.9%-10.9%
Q2 2025-8.2%-3.4%+2.2%
Q1 2025+5.4%+20.1%+42.6%
Q4 2024+2.9%+0.8%-24.7%
Q3 2024+19.5%+20.4%+61.7%
Q2 2024-14.1%-12.6%-16.2%
Q1 2024+14.1%+18.5%+22.3%
Q4 2023-12.7%-8.7%-8.2%
Q3 2023-13.6%-16.8%-8.1%
Q2 2023-10.4%-8.3%-26.5%
Q1 2023-11.6%-11.8%-2.3%
Q4 2022+11.4%+15.8%+36.8%
Q3 2022-5.9%-4.1%-18.2%
Q2 2022+10.7%+9.3%+20.8%
Q1 2022-1.9%-2.9%-35.4%
Q4 2021-9.7%+2.0%-11.8%
Q3 2021+3.4%+18.6%+31.6%
Q2 2021+0.2%+6.8%+10.5%
Q1 2021-3.4%-2.7%-15.1%
Q4 2020-5.4%-4.9%-23.5%
Q3 2020+0.9%-0.4%+16.0%
Q2 2020-3.5%-1.8%+30.7%
Q1 2020+1.7%-1.0%+8.6%
Q4 2019+13.0%+37.6%+17.8%
Q3 2019+17.3%+28.2%+30.3%
Q2 2019-12.1%-9.4%-18.7%
Q1 2019-6.1%-8.5%-27.8%
Q4 2018+3.2%+5.2%-0.9%
Q3 2018+7.0%+13.8%+10.8%
Q2 2018+17.2%+14.7%+1.2%
Q1 2018-5.2%+1.0%-2.7%
Q4 2017-5.6%-5.5%-2.0%
Q3 2017-9.7%-8.7%-7.5%
Q2 2017+8.6%+11.1%+11.2%
Q1 2017-7.3%-3.7%+6.6%
Q4 2016-7.7%-11.2%-5.1%
Q3 2016+0.8%-2.3%-2.8%
Q2 2016+1.5%-0.5%-12.9%
Q1 2016-9.0%
Q4 2015+1.5%
Q3 2015+8.4%
Q2 2015-7.5%
Q1 2015+1.7%
Q4 2014-6.2%
Q3 2014+0.9%
Q2 2014+1.9%
Q1 2014-13.8%
Q4 2013+3.1%
Q3 2013-13.7%
Q2 2013+7.9%
Q1 2013+25.1%
Q4 2012+2.0%
Q3 2012+0.5%
Q2 2012+4.0%
Q1 2012-1.6%
Q4 2011-1.6%
Q3 2011+0.9%
Q2 2011+3.6%
Q1 2011-3.8%
Q4 2010+3.7%
Q3 2010+9.6%
Q2 2010+6.8%
Q1 2010

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