Quarterly Report — Q1 2024
Filed April 24, 2024
Q1 2024 was a down quarter — automotive revenues dropped meaningfully year-over-year as Tesla leaned on price cuts amid softening demand, while the energy generation and storage segment provided a bright spot with continued growth. Net income fell sharply compared to Q1 2023, pressured by thinner margins across the core car business. The balance sheet remains solid with substantial cash reserves, but the profit trajectory is clearly decelerating, making the path forward hinge on whether upcoming models and the energy business can reignite growth.
Filing details
Performance by segment
Automotive
Automotive segment revenue declined 10% YoY to $19.67B (including services and other), driven by a $2.42B or 13% drop in automotive sales from lower average selling prices and a decrease of approximately 27,000 combined Model 3 and Model Y deliveries. The declines were caused by the early ramp of the updated Model 3 at Fremont, Red Sea shipping disruptions, and an arson attack at Gigafactory Berlin-Brandenburg, partially offset by approximately 7,000 additional Cybertruck deliveries. Total automotive gross margin compressed from 21.1% to 18.5%.
“We are focused on profitable growth, including by leveraging existing factories and production lines to introduce new and more affordable products, increasing vehicle production, utilized capacity and delivery capabilities, reducing costs, improving and developing our vehicles and battery technologies.”
Energy Generation and Storage
Energy generation and storage revenue grew 7% YoY to $1.64B, driven by higher average selling prices on Megapack partially offset by lower solar deployments. Gross margin surged from 11.0% to 24.6% due to increased IRA manufacturing credits recognized year over year. The company deployed 4.05 GWh of energy storage products in Q1 and is building a new Megafactory in Shanghai while ramping Lathrop, California.
“We continue to increase the production of our energy storage products to meet high levels of demand, including the construction of a new Megafactory in Shanghai and the ongoing ramp at our Megafactory in Lathrop, California.”