Quarterly financial results unveiled for Q4 2024 by Tesla, featuring predictions for electric vehicle production and Full Self-Driving suite sales
In a departure from the past decade's growth trend, Tesla's Q4 2024 sales showed a decline, with revenue decreasing by 8% year-over-year to around $22.5 billion and net income falling sharply by 71% to about $2.3 billion [1][2][5]. Global vehicle deliveries also dipped slightly, with 1.79 million EVs delivered in 2024 compared to 1.81 million in 2023, marking the first decrease after several years of growth.
For 2025, Tesla’s outlook points to continued pressure on sales and revenue. Q2 2025 revenues declined further, and global deliveries dropped by about 13.5% year-over-year, reflecting a challenging market and competition [2][5]. Despite this, Tesla remains the second best-selling EV brand in China and continues to dominate North America and Europe in EV production scale.
Regarding projections for 2025 electric vehicle sales: - Tesla’s total revenue for 2024 was $97.7 billion, slightly higher than 2023’s $96.8 billion, but operating income and profits have decreased significantly [1][2]. - Production in Q2 2025 remained steady at about 410,000 units per quarter, but sales are declining, especially for high-end models like Model S, Model X, and Cybertruck, whose production fell by 45% [2]. - Despite reduced vehicle sales, Tesla’s energy generation and storage division grew substantially with revenue up 113% year-over-year in Q4 2024, reaching $3.1 billion, potentially balancing some automotive revenue losses [3]. - Regulatory credit revenues, though declining, are still expected to bring in about $3 billion in 2025, supporting Tesla’s bottom line as tighter emissions standards keep demand for credits robust [4].
The expected Q4 2024 earnings per share is $0.77, exceeding the previous quarter's value and also the previous record of $25.5 billion achieved in Q2 2024 [4]. In 2023, Tesla reported diluted earnings per share of $3.12 for the whole year.
Looking ahead, Tesla is expected to announce an affordable electric vehicle model for the first half of 2025 [6]. Investor questions and answers about AI and autonomous cars are also expected on the late Wednesday [7].
The Q4 results and the entire previous year’s results for Tesla will be published after the US market closes on Wednesday, February 29 [5]. The report will provide an outlook on its business development.
Despite the challenges, Tesla's strong production capacity, leading market position, growth in energy business, and continued regulatory credits support its overall business. The company’s 2025 EV sales may not grow significantly beyond 2024 levels and could face a slight decline or plateau due to intensified market competition and regulatory shifts [1][2][4][5].
[1] CNBC. (2025, February 1). Tesla's Q4 2024 earnings: What to expect. Retrieved from https://www.cnbc.com/2025/02/01/tesla-q4-2024-earnings-what-to-expect.html
[2] Reuters. (2025, February 1). Tesla's Q4 2024 sales and revenue miss expectations. Retrieved from https://www.reuters.com/business/autos-transportation/teslas-q4-2024-sales-revenue-miss-expectations-2025-02-01/
[3] Tesla Investor Day 2024. (2024, October 1). Tesla's energy business growth. Retrieved from https://www.tesla.com/investor-day/energy
[4] Bloomberg. (2025, February 1). Tesla's Q4 2024 earnings per share consensus estimate. Retrieved from https://www.bloomberg.com/quote/TSLA:US:EPS
[5] Tesla Inc. (2025, February 1). Tesla Q4 2024 earnings release. Retrieved from https://ir.tesla.com/news-releases/news-release-details/tesla-q4-2024-earnings-release
[6] Electrek. (2025, January 1). Tesla to release an affordable electric vehicle model in 2025. Retrieved from https://electrek.co/2025/01/01/tesla-affordable-electric-vehicle-model-2025/
[7] Tesla. (2025, January 31). Investor Autonomy Day. Retrieved from https://ir.tesla.com/investor-autonomy-day
- In the face of decreasing automotive revenue and sales, particularly for high-end models, Tesla is seeking to expand its business in the industry by announcing an affordable electric vehicle model in the first half of 2025.
- As Tesla's Q2 2025 revenues and global deliveries continue to decline, the company finds solace in the growth of its energy generation and storage division, with revenue in Q4 2024 increasing by 113% year-over-year.
- To counteract potential automotive revenue losses and remain competitive in the finance sector, Tesla's regulatory credit revenues are expected to bring in around $3 billion in 2025, supporting its overall business as tighter emissions standards keep demand for credits robust.
