Tesla Set to Unveil Q2 2024 Earnings: Will Record Energy Storage Boost Revenues Amid Falling Deliveries? Tune in This Tuesday
Tesla is set to reveal its financial results for the second quarter of 2024 on Tuesday, July 23, after the market closes. The announcement will be followed by a conference call and a Q&A session with Tesla’s management, offering insights into the company’s continued evolution beyond its automotive roots into an “AI/robotics” sphere, as described by CEO Elon Musk.
In the second quarter of 2024, Tesla achieved a total production of 410,831 units and delivered 443,956 units, reflecting a decrease in deliveries year-over-year for the second consecutive quarter. However, these numbers represent a rebound from the previous quarter. The bulk of these deliveries came from the Model 3/Y, with 422,405 vehicles reaching customers. The remaining 21,551 were from other models such as the Tesla Model S and X. Despite these robust delivery figures, only 2% of these transactions were subject to operating lease accounting.
Tesla also hit a new milestone in energy storage, deploying a record 9.4 GWh. This achievement is expected to play a significant role in informing revenue predictions for the quarter, alongside factors such as vehicle deliveries and recent price adjustments. Analysts are closely watching these metrics, with Wall Street projecting revenues at around $24.380 billion and independent analyses estimating slightly higher figures.
Financially, Tesla’s strategy appears to focus on sustaining marginal profitability amid aggressive expansion efforts. Wall Street’s consensus on earnings per share (EPS) stands at $0.61, compared to last year’s $0.91 during the same period. These figures highlight the company’s ongoing pricing and cost management challenges.
The upcoming shareholder letter and analyst call are likely to address top shareholder queries submitted through the “Say Technologies” platform. Questions anticipated for discussion include the date of the Robo taxi event, the launch of the first Robo taxi ride, Tesla’s strategic priorities over the next five years, updates on 4680 battery cell production, and the availability of Tesla’s humanoid robot, Optimus.
Despite these advances, Tesla’s stock performance and market perception face scrutiny, particularly concerning its gross margin which, at 17.35% last quarter, lags behind industry averages and competitors like VW, Toyota, and Honda. This has sparked commentary from market analysts like Larry Evans, who criticize Tesla’s valuation given its current financial metrics like the forward price-to-earnings ratio, which hovers around 100.
Looking ahead, Tesla may need to adjust its guidance for the second half of the year, amid signs of declining sales performance. However, the impact of its burgeoning energy storage segment could offset concerns, potentially reshaping its financial landscape.
As Tesla continues to push the boundaries of innovation and market strategies, this upcoming financial presentation will be crucial for investors and industry watchers, offering a clearer, up-to-date picture of its trajectory in a dynamically changing automotive sector.
