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Tesla (TSLA) Q2 Earnings Miss Expectations, Decrease Y/Y
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Tesla (TSLA - Free Report) posted mixed second-quarter 2024 results, wherein earnings missed the Zacks Consensus Estimate but revenues beat the same. This marked the fourth earnings miss in a row for the electric vehicle (EV) behemoth, following 10 straight quarters of beat. The company remained cautious about its vehicle volume growth rate for 2024, which is expected to be noticeably lower than 2023.
Second-quarter earnings per share (EPS) of 52 cents missed the Zacks Consensus Estimate of 62 cents and also declined from the year-ago figure of 91 cents. Total revenues of $25.5 billion topped the consensus mark of $25.1 billion and rose 2% year over year.
Tesla’s second-quarter production totaled 410,831 units (386,576 Model 3/Y and 24,255 other models), which declined 14% year over year and missed our estimate of 498,522 units. The company delivered 443,956 vehicles, reflecting a year-over-year decline of 5% and lagging our estimate of 473,740 units. The Model 3/Y registered deliveries of 422,405 vehicles, marking a year-over-year decline of 5% and missing our projection of 447,483 units.
Total automotive revenues of $19.88 billion were down 7% year over year and missed our estimate of $22.37 billion. The reported figure also included $890 million from the sale of regulatory credits for EVs, which skyrocketed 215.6% year over year. Automotive sales, excluding revenues from leasing and regulatory credits, totaled $18.53 billion, missing our projection of $21.34 billion.
Automotive gross profit came in at $3.7 billion. Automotive gross margin came in at 18.5%, which fell from 19.2% reported in the second quarter of 2023 but topped our forecast of 18.3%. Tesla’s operating margin declined 330 basis points year over year to 6.3% in the quarter under discussion and also lagged our estimate of 7.5%.
Energy Generation and Storage revenues came in at $3 billion in the second quarter of 2024, which was higher than the year-ago quarter’s figure of $1.51 billion and topped our estimate of $1.91 billion. Notably, energy storage deployments came in at 9.4 GWh, surpassing our projection of 6.88 GWh.
Services and Other revenues were $2.61 billion, which increased 21% year over year and beat our estimate of $2.27 billion.
Financials
Tesla had cash/cash equivalents/investments of $30.72 billion as of Jun 30, 2024, compared with $29.1 billion as of Dec 31, 2023. Long-term debt and finance leases, net of the current portion, totaled $5.48 billion, up from $2.86 billion as of Dec 31, 2023.
Net cash provided by operating activities amounted to $3.61 billion in second-quarter 2024. Capital expenditure totaled $2.27 billion in the quarter under review. Tesla registered a free cash flow of $1.34 billion during the reported quarter, up from a free cash flow of $1 billion generated in the year-ago period.
The consensus estimate for SZKMY’s 2025 earnings suggests year-over-year growth of 2.09%. EPS estimates for 2025 and 2026 have improved 38 cents and 15 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for HMC’s 2025 sales and earnings suggests year-over-year growth of 0.73%. EPS estimates for 2025 and 2026 have improved 4 cents each in the past seven days.
The Zacks Consensus Estimate for BYDDY’s 2024 sales and earnings suggests year-over-year growth of 21.11% and 9.93%, respectively. EPS estimates for 2024 and 2025 have improved 19 cents and 29 cents, respectively, in the past 30 days.
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Tesla (TSLA) Q2 Earnings Miss Expectations, Decrease Y/Y
Tesla (TSLA - Free Report) posted mixed second-quarter 2024 results, wherein earnings missed the Zacks Consensus Estimate but revenues beat the same. This marked the fourth earnings miss in a row for the electric vehicle (EV) behemoth, following 10 straight quarters of beat. The company remained cautious about its vehicle volume growth rate for 2024, which is expected to be noticeably lower than 2023.
Second-quarter earnings per share (EPS) of 52 cents missed the Zacks Consensus Estimate of 62 cents and also declined from the year-ago figure of 91 cents. Total revenues of $25.5 billion topped the consensus mark of $25.1 billion and rose 2% year over year.
Tesla, Inc. Price, Consensus and EPS Surprise
Tesla, Inc. price-consensus-eps-surprise-chart | Tesla, Inc. Quote
Key Takeaways
Tesla’s second-quarter production totaled 410,831 units (386,576 Model 3/Y and 24,255 other models), which declined 14% year over year and missed our estimate of 498,522 units. The company delivered 443,956 vehicles, reflecting a year-over-year decline of 5% and lagging our estimate of 473,740 units. The Model 3/Y registered deliveries of 422,405 vehicles, marking a year-over-year decline of 5% and missing our projection of 447,483 units.
Total automotive revenues of $19.88 billion were down 7% year over year and missed our estimate of $22.37 billion. The reported figure also included $890 million from the sale of regulatory credits for EVs, which skyrocketed 215.6% year over year. Automotive sales, excluding revenues from leasing and regulatory credits, totaled $18.53 billion, missing our projection of $21.34 billion.
Automotive gross profit came in at $3.7 billion. Automotive gross margin came in at 18.5%, which fell from 19.2% reported in the second quarter of 2023 but topped our forecast of 18.3%. Tesla’s operating margin declined 330 basis points year over year to 6.3% in the quarter under discussion and also lagged our estimate of 7.5%.
Energy Generation and Storage revenues came in at $3 billion in the second quarter of 2024, which was higher than the year-ago quarter’s figure of $1.51 billion and topped our estimate of $1.91 billion. Notably, energy storage deployments came in at 9.4 GWh, surpassing our projection of 6.88 GWh.
Services and Other revenues were $2.61 billion, which increased 21% year over year and beat our estimate of $2.27 billion.
Financials
Tesla had cash/cash equivalents/investments of $30.72 billion as of Jun 30, 2024, compared with $29.1 billion as of Dec 31, 2023. Long-term debt and finance leases, net of the current portion, totaled $5.48 billion, up from $2.86 billion as of Dec 31, 2023.
Net cash provided by operating activities amounted to $3.61 billion in second-quarter 2024. Capital expenditure totaled $2.27 billion in the quarter under review. Tesla registered a free cash flow of $1.34 billion during the reported quarter, up from a free cash flow of $1 billion generated in the year-ago period.
Zacks Rank & Key Picks
TSLA currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto space are Suzuki Motor Corporation (SZKMY - Free Report) , Honda Motor Co., Ltd. (HMC - Free Report) and BYD Company Limited (BYDDY - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for SZKMY’s 2025 earnings suggests year-over-year growth of 2.09%. EPS estimates for 2025 and 2026 have improved 38 cents and 15 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for HMC’s 2025 sales and earnings suggests year-over-year growth of 0.73%. EPS estimates for 2025 and 2026 have improved 4 cents each in the past seven days.
The Zacks Consensus Estimate for BYDDY’s 2024 sales and earnings suggests year-over-year growth of 21.11% and 9.93%, respectively. EPS estimates for 2024 and 2025 have improved 19 cents and 29 cents, respectively, in the past 30 days.