US electric vehicle (EV) giant Tesla may have experienced record share price highs in 2024, but that doesn’t translate to profitability.
In the carmaker’s 2024 earnings call this morning, Tesla said its year-on-year revenue had increased by just one per cent last year, rising from US$96.8 billion (A$155.3bn) to US$97.7 billion (A$156.7bn).
This was despite its global vehicle deliveries declining to 1,789,226 in 2024, representing a 1.1 per cent drop compared to its record figure of 1,808,581 in 2023.
The decline in deliveries was reflected by a one per cent drop in gross profit, which stood at US$17.5 billion (A$28.1bn) for the year.
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The most telling aspect of Tesla’s 2024 financial performance was a six per cent decline in automotive revenues, which fell from US$82.4 billion (A$132.2bn) in 2023 to US$77 billion (A$123.5bn) last year.
While this was offset in revenue gains from Tesla’s energy generation/storage and services/other ventures, it reflects a change in what EVs the brand’s customers are buying.
In 2024, Tesla made 1,704,093 deliveries of the Model Y and Model 3, with its two most affordable EVs accounting for 95.2 per cent of its total.
The remaining 85,133 deliveries were of the Model S, Model X, Cybertruck and Semi, all of which command higher prices and aren’t available in all global markets such as Australia, which misses out on all four.
A year prior, the Model Y and Model 3 contributed to 96.2 per cent of Tesla’s deliveries, while the more premium vehicles accounted for just 3.8 per cent of the total – due in part to the Cybertruck rolling out to customers in November 2023.
This suggests Tesla relies heavily on sales of its core, affordable models to keep its revenue up, which it failed to do last year.
Last year, Tesla delivered 38,347 vehicles in Australia, a 16.9 per cent drop on its record figure in 2023, when the brand experienced huge growth in the local market.
The announcement of Tesla’s 2024 financial results comes a month after its share price hit a record high of US$479.86 on December 17, after Donald Trump was voted in as the next US President on November 5.
Tesla CEO Elon Musk had thrown his support behind Mr Trump in the lead-up to the election, despite the president-elect making EVs a major target in his campaign, which has resulted in the repeal of a non-binding agreement for EVs to account for 50 per cent of US vehicle sales by 2030.
News agency Reuters previously reported word from insiders close to Mr Trump that the US federal tax credit for EVs, which can be worth up to US$7500 (A$11,625), will be axed in the coming months.
Though some may see this as a threat to Tesla, Mr Musk welcomed the move as it is more likely to harm his potential rivals, which need to trade on their price advantage in an effort to dislodge the EV sales leader.
Mr Trump is also reportedly looking to create pathways to expedite the legality of fully autonomous cars on US roads.
Autonomous driving has been a major focus of Tesla, not only via the ‘Autopilot’ and ‘Full Self-Driving’ systems in its current model range, but also with its upcoming driverless Cybercab robotaxi.
Tesla’s share price has since settled down to the sub-US$400 mark, though it’s still higher than it was pre-election.
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