40 percent of its profit came from selling regulatory credits.

AI Summary:

Tesla’s 2024 financial results were disappointing, with several key points highlighted:

  • Automotive Revenues: Fell by 8% in Q4 2024 compared to Q4 2023, totaling $19.8 billion.
  • Energy and Storage Revenues: More than doubled, growing by 113% to $3 billion in Q4 2024.
  • Services: Grew by 31% in Q4 2024, contributing $2.8 billion.
  • Total Revenue: Increased by 2% in Q4 2024, but income fell by 23%, with an operating margin of 6.2%.
  • Net Profits: Dropped by 71% to $2.3 billion in Q4 2024.
  • Annual Performance: Automotive revenues decreased by 6% to $77 billion in 2024. Energy generation and storage increased by 67% to $10 billion. Services grew by 27%, bringing in $10.5 billion.
  • Gross Profits: Fell by 1%, with net profits dropping by 53% to $7.1 billion for the year.
  • Free Cash Flow: Decreased by 18% to $3.6 billion.
  • Regulatory Credits: $2.8 billion of profit came from selling regulatory credits, not from core business activities.
  • Future Predictions: Tesla expects energy storage revenues to grow by at least 50% year-over-year and aims to grow automotive sales by more than 60% in 2025.

Despite the poor financial results, Tesla’s share price increased by 103% over the same period.

  • INeedMana@lemmy.worldEnglish
    98·
    15 hours ago

    Net Profits: Dropped by 71% to $2.3 billion in Q4 2024.

    Since when 2.4 billion net profit is terrible?

    “Yes, we earned billions but it’s actually less than the year before!” Dude, go out and touch some grass…

    • Buffalox@lemmy.worldEnglish
      4·
      8 hours ago

      Since when 2.4 billion net profit is terrible?

      Since Musk claimed in 2022 that a 50% growth per year would be normal for Tesla. And people are stupid enough to partially believe him. In January 2024 Musk promised 2024 would be a HUGE growth year, with autonomous RoboTaxi being launched in June. He claimed it’s LITERALLY only 5 months away!!!

      https://fortune.com/2025/01/29/tesla-shares-rally-2025-earnings-growth/

      Tesla Inc. revealed plans to begin robotaxi operations and forecast a sales recovery this year, fueling what Elon Musk predicted would be an “epic” period of growth for the electric vehicle maker.

      Nothing he claimed or promised has come true. Quite the opposite.

    • TechAnon@lemm.eeEnglish
      6·
      9 hours ago

      71% drop in a single quarter is time for workers to start looking for other jobs bad. This was way before Elon’s Nazi salute so expect things to get way worse. I’d be so embarrassed if I drove a Tesla.

    • Ulrich@feddit.orgEnglish
      6·
      12 hours ago

      You just glossed right over the “dropped by 71%” bit…since when is that not terrible? That’s an incredible decrease in profits over the course of just 12 months.

    • 👍Maximum Derek👍@discuss.tchncs.deEnglish
      11·
      15 hours ago

      “Terrible” is just for attention, but the bit of news that would have cratered any other company’s stock it that it’s down 71% YOY. Plus:

      Regulatory Credits: $2.8 billion of profit came from selling regulatory credits, not from core business activities.

      People in the current administration have said they plan to end these credits in the coming months. Without them in 2024 Tesla would have reported a $500million loss for the year.

      • splinter@lemm.eeEnglish
        51·
        10 hours ago

        You misread the sheet slightly. The total profit for the year was $7.1 billion, of which $2.8 billion was renewable energy credits. I.e. their profit would have only been $4.3 billion.

      • NotMyOldRedditName@lemmy.worldEnglish
        1·
        13 hours ago

        Source on the killing of credits?

        Those are California ZEV credits, and other similar non USA programs.

        They’re going to kill a lot of other things, but haven’t heard about that yet.

          • NotMyOldRedditName@lemmy.worldEnglish
            3·
            12 hours ago

            Just on mobile now so can’t read it all, but it did get the gist across, thanks! I hadnt seen that yet.

            I still think they’d have to win a lawsuit against California saying California can’t have the program?

            Edit: as in I don’t think they can just scrap it like he’s scrapping other things via executive order.

        • 👍Maximum Derek👍@discuss.tchncs.deEnglish
          6·
          13 hours ago

          And every other car manufacturer has valuation multiples 12x lower than Tesla’s. Musk’s worst nightmare is investors treating Tesla like a car company. That’s why he keeps pushing on “Tesla is an AI company that makes cars, not a car company.”

          • ExcessShiv@lemmy.dbzer0.comEnglish
            03·
            14 hours ago

            Oh Yeah I completely agree, apparently everyone is super touchy with everything elon and couldn’t take the joke.

    • Viri4thus@feddit.orgEnglish
      1·
      14 hours ago

      When those profits come from carbon credits which means your main activity is still wildly unsustainable over a decade after the company being founded. Tesla is a massive investor bubble and their cars are objectively trash with failure rates 3x higher than the industry’s worse. Tesla is garbage sustained by a massive collective illusion of US exceptionalism.

      • NotMyOldRedditName@lemmy.worldEnglish
        01·
        13 hours ago

        When you know you’re going to get a billion dollars in credits for something, you plan your business around having those billion credits.

        You sell cars cheaper, you expand faster, you try new ideas you might not have tried etc.

        Tesla hasn’t needed those credits for a very long time now, but if they are there, of course they’re going to take as full advantage of the situation as they can.

        If the credits had stopped around when Tesla didn’t need them anymore, I’m sure they would look very different than today, but they’d still be around and profitable.