U.S.-based electric vehicle (EV) maker Tesla posted a net income of $2.32 billion in the fourth quarter (Q4) of the financial year (FY) 2024, down 71% year-over-year (YoY). This decline can be partly attributed to the $5.9 billion one-time non-cash tax benefit that boosted last year’s results.

The company recorded total revenue of $25.71 billion in Q4, reflecting a modest 2% YoY growth and missing analyst expectations by $1.42 billion. The modest growth was attributed to increased vehicle deliveries, energy storage deployments, and regulatory credit revenue. However, the average selling price (ASP) of vehicles fell, impacting profitability due to pricing adjustments and incentives aimed at increasing affordability.

Revenue from the energy generation and storage segment rose 113% YoY to $3.06 billion, while revenue from the automotive segment fell 8% to $19.8 billion.

Revenue was impacted by a reduction in the ASP of its Model 3 and Model Y vehicles due to pricing strategies, attractive financing options, and changes in product mix.

The company reported an earnings per share (EPS) of $0.73, missing expectations by $0.04.

Operating income fell 23% YoY to $1.58 billion, with an operating margin of 6.2%. This decline was primarily driven by the lower ASP of its vehicles and increased operating expenses related to artificial intelligence and research and development projects. However, this was partially offset by cost reductions in raw materials and improvements in Tesla’s Energy Generation and Storage segment.

Tesla’s adjusted Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) grew 25% YoY to $4.9 billion in Q4, driven by cost efficiencies and energy business growth.

Full-Year 2024 Performance

For 2024, Tesla reported a total net income of $7.1 billion, a 53% decline from the previous year.

Total revenue was $97.7 billion, up 1% YoY. The energy generation and storage division generated $10.1 billion in revenue in 2024, marking a 67% YoY increase and nearly doubling the previous year’s figures.

The company’s adjusted EBITDA remained stable at $16.6 billion, showing no significant change from 2023.

Tesla CEO Elon Musk stated, “2024 was a pivotal year for Tesla. We achieved record vehicle deliveries and energy storage deployments while making significant investments in our future growth, including AI training, new vehicle manufacturing, and energy storage expansion.”

He emphasized that affordability remains a top priority for the company, leading to a record-low cost of goods sold (COGS) per vehicle at under $35,000 in Q4.

Electric Vehicles

Tesla delivered 1.79 million vehicles in 2024, down 1% from the 1.81 million delivered in 2023. Model 3/Y deliveries reached 1.7 million, down 2% YoY. Other Tesla models, including the Cybertruck and Model S/X, saw a 24% YoY increase in deliveries, totaling 85,133 units in 2024.

Tesla delivered 495,570 vehicles in Q4 2024, representing a 2% YoY increase. Model Y remained the best-selling vehicle worldwide, with the newly upgraded version now available in all markets.

Production, however, declined by 7% YoY to 459,445 vehicles in Q4, partly due to factory upgrades and shifts in production strategy.

The company confirmed that preparations are underway to launch new, more affordable EV models in 2025. Additionally, Tesla’s Cybertruck production ramped up, with an installed capacity of over 125,000 units annually.

Asked at the analysts’ call about President Donald Trump’s plan to reverse the EV mandate, Musk replied that he believes that sustainable transport is inevitable. “I’m highly confident that all transport will be autonomous electric, including aircraft, and that it simply can’t be stopped any more than one could have stopped the advent of the external combustion engine, steam engine, or one could have stopped the advent of the internal combustion engine …  The only thing holding back electric cars was range, and that is the sole problem.”

Energy Storage

Tesla’s energy storage business set new records in 2024, with deployments more than doubling to 31.4 GWh, a 114% YoY increase. Q4 alone saw 11 GWh of storage deployed, a 244% YoY surge. Tesla’s Megapack and Powerwall products were the primary drivers of this growth.

The Shanghai Megafactory, completed in December, is expected to begin ramping production in Q1 2025.

Tesla also expanded its Supercharger network, adding over 10,000 new stalls globally in 2024, bringing the total to 65,495 Supercharger connectors worldwide.

Looking ahead to 2025, Tesla expects its vehicle business to return to growth, driven by advancements in autonomous driving and the launch of new products. The company also aims to increase energy storage deployments by at least 50% YoY.

Tesla’s revenue for the Q3 of 2024 rose 8% YoY to $25.18 from $23.35 billion on the back of growth in vehicle deliveries and energy generation and storage services.