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Tesla Q2’24 Recap: Revenue Surges to $25.5B, EPS Misses at $0.52, Strategic Focus on New Models and Profitability Targets

Abhishek Sharma
Founder & Editor-in-Chief
Published: 2 min read
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Earnings Per Share (EPS):
   – Actual EPS was $0.52, slightly below the estimated $0.62, indicating a shortfall.

Revenue:
   – Tesla reported revenue of $25.5 billion, surpassing the expected $24.38 billion, demonstrating better-than-anticipated performance.

Total GAAP Gross Margin:
   – The GAAP gross margin was 18%, exceeding the estimated 17.4%, reflecting strong profitability.

Automotive Gross Margin (excluding credits):
   – Automotive gross margin was 14.6%, lower than the estimated 16%, indicating some challenges in cost management.

Free Cash Flow:
   – Free cash flow stood at $1.34 billion, below the estimated $1.9 billion, indicating lower-than-expected cash generation.

Capital Expenditure (Capex):
   – Capex increased by 10% year-over-year to $2.27 billion, slightly below the estimated $2.5 billion.

Tesla Q2’24 Recap: Revenue Surges to .5B, EPS Misses at alt=

Regarding Tesla’s strategic updates and outlook:

– Production and Profitability Targets:
  – Cybertruck production more than tripled sequentially and is on track to achieve profitability in the U.S. by year-end.
  – The company remains focused on reducing costs, including lowering the cost of goods sold (COGS) per vehicle.

– New Product Initiatives:
  – Tesla plans to introduce new vehicles as scheduled in the first half of 2025.
  – The “unboxed” manufacturing strategy will be applied to Robotaxi production.

– Semi-Truck Production:
  – Preparation for the Semi factory continues, with production expected to commence by the end of 2025 in the U.S.

– Outlook for 2024:
  – Growth in vehicle volume may be slower in 2024 due to the launch of new products and next-generation vehicles.
  – Revenue from energy storage is anticipated to outpace automotive revenue.

– Financial Position and Profitability:
  – Tesla maintains sufficient liquidity to support its product roadmap and expansion plans, ensuring a robust balance sheet.
  – Profits from hardware will be supplemented by AI, software, and fleet-based operations.

– Future Product Developments:
  – Affordable models are on track for production in 2025, leveraging both current and next-generation platforms.

This comprehensive overview captures Tesla’s recent performance and strategic direction moving forward.

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Abhishek Sharma
Founder & Editor-in-Chief

Abhishek Sharma

I’m Abhishek Sharma, an Advocate based in Delhi, entrepreneur, investor, and founder of BigBreakingWire. I am an enrolled Advocate with a strong interest in entrepreneurship, media, and technology. I founded BigBreakingWire, a digital news platform covering breaking news, business, financial markets, companies, and important developments in India and around the world. I also have a software company and take an active interest in technology, software, AI, digital products, and new business ideas. As an investor, I’m interested in discovering and investing in promising businesses and startups. I look for good ideas, strong founders, practical business models, and opportunities with long-term potential. I enjoy building businesses, learning about new industries, and connecting with people who are working on interesting ideas and opportunities. Advocate | Entrepreneur | Investor | Founder & Editor-in-Chief, BigBreakingWire

Last reviewed by Abhishek Sharma on July 24, 2024

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