Tesla Q2 2024 Earnings Call: Key Highlights
Tesla (NASDAQ
) held its Q2 2024 earnings call following the release of its Q2 2024 Update Letter. Here are the key takeaways from the earnings call.
Financial Highlights
Tesla reported total revenues of $25.5 billion in Q2 2024. The automotive segment contributed $19.878 billion. The company’s non-GAAP earnings per share (EPS) stood at $0.52, while the GAAP EPS was $0.42. Additionally, Tesla reported a GAAP operating income of $1.6 billion after accounting for $600 million in restructuring charges.
Key Updates from the Earnings Call
Elon Musk’s Opening Remarks
Elon Musk began by acknowledging the increasing competition in the electric vehicle (EV) market. He mentioned that despite competitors offering discounts, Tesla achieved record revenues in the quarter. Musk thanked the Tesla team for their hard work and highlighted the significant progress in Full Self-Driving (FSD) technology. He noted that FSD version 12.5 has five times the parameters of version 12.4, encouraging owners to try it out.
Robotaxi and Optimus Developments
Musk revealed that the unveiling of the Tesla Robotaxi is planned for October 20, 2024, delayed due to design changes. He also discussed Optimus, Tesla’s humanoid robot, estimating that several thousand units would be produced and performing useful tasks by next year. Limited production of Optimus Version 1 is expected to begin next year.
Tesla Energy and Future Plans
Tesla Energy is growing rapidly, with plans to potentially double or triple production thanks to the Lathrop and Shanghai Megafactories. Musk also hinted at a more affordable Tesla model set to be unveiled in the first half of 2025.
Analysts’ Questions and Musk’s Responses
During the call, analysts asked about various aspects of Tesla’s operations:
- Impact of Potential Political Changes: Musk stated that ending the Inflation Reduction Act (IRA) could have minimal impact on Tesla but would devastate competitors.
- Ride-Sharing Platform: Musk discussed the advantages of Tesla’s ride-sharing platform, noting that vehicles could operate 24/7 and share revenues with Tesla.
- Self-Driving and Licensing: Tesla plans to license FSD technology, requiring hardware upgrades for other manufacturers.
- 4680 Production Cells: Tesla increased cell production by 51% from Q1 to Q2, with more than 1,400 Cybertrucks’ worth of cells produced each week.
Future Vehicles and Production
Musk avoided giving details about future vehicles to prevent affecting current sales. However, he mentioned that Tesla’s CFO highlighted the company’s competitive finance rates and its status as the manufacturer of the most American-made cars.
Conclusion
Tesla’s Q2 2024 earnings call provided insights into the company’s financial performance and future plans. Despite challenges from increased competition, Tesla continues to innovate and expand its product lineup, with significant developments in FSD, energy production, and robotics.
