Tesla (TSLA) CEO Elon Musk and other top executives joined the company’s Q2 2024 Earnings Call yesterday (listen below). Tesla simultaneously released its 2nd quarter earnings and financial update deck on its investor relations website (PDF).
Tesla made a comeback in Q2 from one of the worst quarters in terms of vehicle sales in Q1 in the company’s recent history. However, it was a difficult financial call for Elon Musk and other executives as the company suffered lower automotive revenue in Q2 year-over-year (YoY) (see financial summary below).
In his opening remarks, Elon Musk outlined Tesla’s short and long-term plans to help the company grow in multiple areas. According to Musk, the biggest differentiator for Tesla is autonomy (Autopilot/Full Self-Driving software).
Tesla (TSLA) Q2 2024 Financial Summary
While Tesla’s overall revenue dropped by 7% YoY in Q2 2024, the company’s revenue from energy products almost doubled in the same period. In Q2 alone, Tesla deployed 9.4 GWh of energy storage products (mainly Megapacks) that generated a revenue of $3.014 billion.
Tesla Energy is growing at an unprecedented rate. Last week, Tesla won a Megapack supply contract of 15.3 GWh worth at least 7 billion dollars over the next 6 years.
The negative factors impacting Tesla’s revenue in Q2 were:
- Reduced Model S, 3, X, Y vehicle average selling price (ASP) (excl. FX impact), due to pricing, attractive financing options, and mix
- Decline in Model S, 3, X, and Y vehicle deliveries (Q2 YoY)
- Negative FX impact of $0.3B
However, Tesla has plans to overcome the current electric vehicle market slump. The automaker is working on a more affordable Tesla vehicle platform. According to Elon Musk this new vehicle will go into production in the first half of the next year (2025).
Although Tesla’s total gross profit grew only 1% compared to Q2 last year, it increased almost 24% compared to the last quarter (Q1 2024).
Tesla’s operating expenses increased by 39% in Q2 YoY. According to the company’s Q2 2024 update and Elon Musk’s comments during the earnings call, the hike in expenses is mostly attributable to research, development, and infrastructure investment costs in the company’s artificial intelligence (AI) efforts.
Tesla Q2 2024 Earnings Call with Elon Musk
Elon Musk’s focus in the Q2 2024 Earnings Call was the next line of avenues that the company is rigorously working on. This includes Full Self-Driving, the Tesla Optimus humanoid robot, the expansion of the Dojo GPU cluster, and the next wave of Tesla vehicle products.
Tesla’s CEO refrained from letting out much information about the upcoming Tesla cars because it is kept secret for launch and unveiling events. The more affordable Tesla car (under $25K) is going to go into production in the first half of next year, Musk confirmed once again.
In response to a question about the status of the next-gen Tesla Roadster, Musk replied that most of the engineering has been completed. Tesla is still working on some upgrades to it. According to Musk, the Tesla Roadster will go into production next year and it will be something special.
The Robotaxi event that was due on 8th August (8/8) has now been delayed to 10th October.
There was particularly an interesting question during the call. Since the Cybertruck is such an iconic product, does Tesla plan to have a Cyber vehicle lineup based on the theme and design of the Cybertruck? Elon Musk did not outright deny the possibility.
“I think we want to limit product announcements to when we have a special specific product announcement event, rather than earnings calls,” Musk replied. This gives me vibes that there is a possibility of a CyberSUV or CyberVan in the future.
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 releases its financial update for this year's 2nd quarter and the company's CEO Elon Musk talks on an important Q2 2024 Earnings Call.){kind=link}