Tesla Reports Q4 Earnings: $2.3 Billion Net Income, $25.7 Billion Revenue
Tesla has released its latest earnings report, revealing a net income of $2.3 billion on $25.7 billion in revenue for the fourth quarter of 2024. This represents a 1.9 percent increase in revenue year over year, but a 70 percent decrease in net income compared to Q4 2023. The company’s net income in Q4 2023 included a one-time non-cash tax benefit of $5.9 billion.
For the full year, Tesla reported a net income of $7.1 billion on $97.7 billion in revenue, a 6 percent decrease compared to 2023. The company sold $692 million in regulatory credits to other automakers in Q4, representing about a quarter of its profits. For the full year, it sold nearly $2.8 billion in credits.
Tesla is making progress on reducing the cost of goods sold (COGS) per vehicle to under $35,000, its lowest level yet. The company attributes this to “raw material cost improvement” and reiterated its intention to release a more affordable EV later this year. Deliveries of the refreshed Model Y, which starts at $61,630, are expected in the first quarter of this year.
The company also shared updates on its efforts to develop fully autonomous vehicles. Tesla said its drivers have now cumulatively driven over 3 billion miles on Full Self-Driving (Supervised) as of January. It also claims to have increased AI training compute by over 400% in 2024 and remains on track to “unlock an unsupervised FSD option for our customers and the Robotaxi business, which we expect to begin launching later this year in parts of the US.”
Tesla is also making progress on growing its manufacturing footprint. The company shared new pictures of its newly completed Shanghai Megapack factory and the upcoming Semi truck factory in Nevada, where production is slated to start later in 2025.
The company’s 50,000 GPU training cluster in Giga Texas, called “Cortex,” helped enable V13 of FSD (Supervised), which boasts major improvements in safety and comfort. FSD (Supervised) can now start from park and perform unpark, reverse, and park capabilities.
Tesla also anticipates the Cybertruck will soon become eligible for the $7,500 federal EV tax credit, “helping to improve affordability and access for even more customers.” The company included an interesting chart in its shareholder letter outlining the new technologies in the Cybertruck that will also appear in the company’s future vehicles.
The earnings report comes as Elon Musk continues to consolidate power within the US government, installing former employees to key positions and overseeing a potentially massive purge of federal workers. Musk is reportedly sleeping at the Department of Government Efficiency headquarters in Washington, DC.
