On July 23, 2024, Tesla Inc (TSLA, Financial) released its 8-K filing for the second quarter of 2024. Tesla, a vertically integrated battery electric vehicle automaker and developer of autonomous driving software, reported significant financial achievements despite facing a difficult operating environment.
Performance and Challenges
Tesla Inc (TSLA, Financial) achieved record quarterly revenues of $25.5 billion, a 2% year-over-year increase. This growth was driven by the Energy Generation and Storage business, Cybertruck deliveries, higher regulatory credit revenue, and growth in Services and Other segments. However, the company faced challenges such as reduced average selling prices (ASP) for its S3XY vehicle lineup, a decline in vehicle deliveries, and negative foreign exchange impacts.
Financial Achievements
In Q2 2024, Tesla Inc (TSLA, Financial) reported a GAAP operating income of $1.6 billion and a GAAP net income of $1.5 billion. The non-GAAP net income stood at $1.8 billion. The company also achieved a record in energy storage deployments with 9.4 GWh, contributing to record revenues and gross profits for the segment. Operating cash flow was $3.6 billion, and free cash flow was $1.3 billion, despite significant capital expenditures on AI infrastructure.
Key Financial Metrics
| Metric | Q2 2023 | Q2 2024 | YoY Change |
|---|---|---|---|
| Total Revenues | $24.927B | $25.500B | 2% |
| Gross Profit | $4.533B | $4.578B | 1% |
| Operating Income | $2.399B | $1.605B | -33% |
| Net Income (GAAP) | $2.703B | $1.478B | -45% |
| Free Cash Flow | $1.005B | $1.342B | 34% |
Operational Highlights
Tesla Inc (TSLA, Financial) saw a sequential rebound in vehicle deliveries in Q2 2024, with global deliveries reaching 443,956 units. The company also made significant progress in its AI initiatives, reducing the price of Full Self-Driving (FSD) in North America and launching free trials. The Cybertruck became the best-selling EV pickup in the U.S. during the quarter.
Income Statement and Balance Sheet
According to the income statement, Tesla Inc (TSLA, Financial) reported total automotive revenues of $19.878 billion, energy generation and storage revenues of $3.014 billion, and services and other revenues of $2.608 billion. The balance sheet showed total assets of $112.832 billion, with cash, cash equivalents, and investments increasing to $30.720 billion.
Cash Flow Statement
The cash flow statement revealed net cash provided by operating activities of $3.612 billion, capital expenditures of $2.270 billion, and free cash flow of $1.342 billion. The company also reported a significant increase in cash and cash equivalents, ending the quarter with $15.354 billion.
Analysis
Tesla Inc (TSLA, Financial)'s performance in Q2 2024 highlights its resilience and ability to achieve record revenues despite a challenging environment. The growth in the Energy Generation and Storage business and the successful launch of the Cybertruck are notable achievements. However, the decline in operating income and net income indicates the impact of reduced vehicle ASPs, restructuring charges, and increased operating expenses driven by AI projects.
Overall, Tesla Inc (TSLA, Financial) continues to focus on cost reduction, growing its hardware business, and accelerating the development of AI-enabled products and services. The company's strong cash position and free cash flow generation provide a solid foundation for future growth and investment in new technologies and products.
Explore the complete 8-K earnings release (here) from Tesla Inc for further details.
