01—Abstract
Summary
Summary of the 10-Q filed April 24, 2024. Cited figures are marked; the original filing is the authoritative source.
Tesla, Inc.'s (TSLA) first quarter 2024 report shows a decline in revenue and net income compared to the prior year, primarily driven by lower automotive sales and average selling prices.
Total revenues were $21.3 billiona, down from $23.3 billion in Q1 2023, while net income attributable to common stockholders fell to $1.13 billion from $2.51 billion. This performance was impacted by reduced vehicle deliveries, especially for Model 3 and Model Y, partly due to production ramp-ups and external factors like supply chain disruptions. Despite the revenue dip, the company saw growth in its Services and Other segment and a significant improvement in the Energy Generation and Storage segment's gross margin.
Research and development expenses increased substantially, reflecting continued investment in AI, battery technology, and new products. The company ended the quarter with a strong cash position of $26.86 billionb in cash and investments, although operating cash flow saw a notable decrease. Management remains focused on cost reduction, production efficiency, and the development of new products and technologies, including FSD and the Cybertruck, while anticipating capital expenditures to exceed $10 billion in 2024.
02—Key points
Key Highlights
- Total revenues decreased by 9% to $21.30 billion compared to $23.33 billion in Q1 2023.
- Net income attributable to common stockholders decreased by 55% to $1.13 billion from $2.51 billion in Q1 2023.
- Automotive sales revenue declined by 13% to $16.46 billion, impacted by lower average selling prices and reduced deliveries.
- Energy Generation and Storage segment revenue increased by 7% to $1.64 billion, with a significant gross margin improvement to 24.6% from 11.0% in the prior year.
- Research and Development expenses increased by 49% to $1.15 billion, reflecting investments in AI and battery technology.
- Cash and cash equivalents and short-term investments stood at $26.86 billion, but net cash provided by operating activities decreased substantially to $242 million from $2.51 billion in Q1 2023.
- Capital expenditures increased by 34% to $2.77 billion, with total expected capital expenditures for 2024 exceeding $10 billion.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2024, Tesla, Inc. kept $0.07.
- Revenue$21.30B100.0%
- Cost of revenue−$17.61B82.6%
- Gross profit$3.70B17.4%
- Operating costs−$2.52B11.9%
- Operating income$1.17B5.5%
- Interest, other & tax$219.0M1.0%
- Net income$1.39B6.5%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed April 24, 2024Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Revenue | $21.30B$23.33B | −8.7% |
| Cost of Revenue | $17.61B$18.82B | −6.4% |
| Gross Profit | $3.70B$4.51B | −18.1% |
| R&D Expenses | $1.15B$771.00M | +49.3% |
| SG&A Expenses | $1.37B$1.08B | +27.7% |
| Operating Expenses | $2.52B$1.85B | +36.7% |
| Operating Income | $1.17B$2.66B | −56.0% |
| Interest Expense | $76.00M$29.00M | +162.1% |
| Net Income | $1.39B$2.51B | −44.7% |
| EPS (Basic) | $0.45$0.80 | −43.7% |
| EPS (Diluted) | $0.41$0.73 | −43.8% |
| Shares Outstanding (Basic) | 3.19B3.17B | +0.6% |
| Shares Outstanding (Diluted) | 3.48B3.47B | +0.5% |
05—Questions
Frequently Asked Questions
What were the main drivers behind the revenue decline in Q1 2024?
The primary driver for the revenue decline was a 13% decrease in Automotive sales revenue, which fell to $16.46 billion from $18.88 billion in the prior year. This was mainly due to lower average selling prices resulting from price reductions and a decrease in combined Model 3 and Model Y cash deliveries, partly caused by production ramp-ups and external disruptions.
How did Tesla's profitability change in Q1 2024 compared to Q1 2023?
Profitability saw a significant decrease. Net income attributable to common stockholders dropped by 55% to $1.13 billion in Q1 2024, compared to $2.51 billion in Q1 2023. This was a result of lower revenues, a decrease in automotive gross margin, and increased operating expenses, particularly in R&D and SG&A.
What is the outlook for capital expenditures and cash flow?
Tesla anticipates capital expenditures to exceed $10 billion for the full year 2024, an increase from the previous year. While the company ended the quarter with a substantial cash and investment balance, net cash provided by operating activities significantly decreased to $242 million in Q1 2024, down from $2.51 billion in Q1 2023. Management aims to continue self-funding growth but acknowledges potential adjustments based on global economic conditions.
How is the Energy Generation and Storage segment performing?
The Energy Generation and Storage segment showed positive performance, with revenue increasing by 7% to $1.64 billion. Notably, the gross margin for this segment saw a substantial improvement, rising to 24.6% in Q1 2024 from 11.0% in the same period last year, driven by increased Megapack selling prices and IRA manufacturing credits.
06—Continue