Tesla reported stronger-than-expected Q4 2024 earnings, powered by record deliveries and aggressive cost-cutting, while CEO Elon Musk doubled down on the company’s commitment to artificial intelligence (AI) and autonomous driving vehicles.
For the quarter ending December 31, revenue reached $28.1 billion and net income was $3.2 billion, both surpassing Wall Street estimates. These figures contrast with earlier reports citing a revenue miss at $25.7 billion—suggesting undisclosed regulatory credit boosts or accounting adjustments bolstered the final tally . The bottom line came in well ahead of analyst expectations.
Tesla delivered approximately 495,000 vehicles during the quarter, setting a new record with nearly 11 GWh of energy storage deployments . These numbers reflect robust operational performance, even as full-year vehicle deliveries slipped slightly to 1.79 million—a subtle decline from 2023 .
Despite rising revenues, margins took a hit. Automotive gross margin (excluding regulatory credits) dropped to roughly 13.6%, down from over 17% the previous quarter . Wall Street had expected around 16%, so this erosion sparked investor concern, though Tesla shares rebounded after Musk’s upbeat call .
Musk emphasized that AI infrastructure investments—such as acquiring Nvidia H100 chips—are instrumental for the company’s autonomous driving roadmap . Driving the narrative was his reaffirmation of Tesla’s planned launch of a fully autonomous, no-driver ride-hailing service in Austin by June 2025, with robotaxi production anticipated by 2026 . He boldly suggested Tesla could one day surpass the value of top tech giants thanks to this transformation .
Tesla also announced plans to release more affordable electric vehicle models in the first half of 2025, leveraging cost-efficiency initiatives that lowered vehicle cost of goods sold to below $35,000 . This strategy, combined with the forthcoming refreshed Model Y and mass-market models built on its next-generation platform, is designed to rekindle vehicle sales growth .
On the energy front, Tesla’s battery storage division saw a 113% revenue surge in 2024, deploying a total of 31.4 GWh and generating around $10.1 billion in revenue—underscoring its growing role within Tesla’s overall portfolio . This segment’s expansion offers a valuable offset to the cooling automotive margins.
The market’s reaction highlighted the importance investors place on Tesla’s future strategy rather than short-term financial performance. Shares leapt nearly 5% in after-hours trading as Musk laid out the vision for affordable EVs, robotaxis, and aggressive cost control .
In closing, Q4 illustrates Tesla’s dual next-act ambitions: scaling renewable energy deployment while revolutionizing mobility through AI-powered autonomous vehicles. As Musk invests heavily in computing infrastructure and trims manufacturing costs, the stage is set for Tesla to redefine its identity—and valuation—as it transitions toward a software-driven transportation and energy ecosystem.
