TESLA, INC. Q1 2024 Update
1
Highlights | 03 |
Financial Summary | 04 |
Operational Summary | 06 |
Vehicle Capacity | 07 |
Core Technology | 08 |
Other Highlights | 09 |
Outlook | 10 |
Photos & Charts | 11 |
Key Metrics | 22 |
Financial Statements | 24 |
Additional Information | 30 |
H I G H L I G H T SS U M M A R Y
Profitability
Cash
Operations
$1.2B GAAP operating income in Q1 $1.1B GAAP net income in Q1 $1.5B non-GAAP net income1 in Q1
Operating cash flow of $0.2B in Q1
Free cash flow2 of negative $2.5B in Q1 (AI infrastructure capex was $1.0B in Q1)
$2.2B decrease in our cash and investments3 in Q1 to $26.9B
Increased AI training compute by more than 130% in Q1 Record energy storage deployment of 4.1 GWh in Q1 Produced over 1,000 Cybertrucks in a single week in April
We experienced numerous challenges in Q1, from the Red Sea conflict and the arson attack at Gigafactory Berlin, to the gradual ramp of the updated Model 3 in Fremont. Excluding Cybertruck and unscheduled downtime, our COGS4 per unit declined sequentially, driven primarily by lower raw material costs.
Global EV sales continue to be under pressure as many carmakers prioritize hybrids over EVs. While positive for our regulatory credits business, we prefer the industry to continue pushing EV adoption, which is in-line with our mission. To support our growth, we have been increasing awareness and expanding vehicle financing programs, including attractive leasing terms for our customers.
While many are pulling back on their investments, we are investing in future growth
- including our AI infrastructure, production capacity, our Supercharger and service networks and new products infrastructure - with $2.8B of capital expenditures in Q1.
We recently undertook a cost-cutting exercise to increase operational efficiency. We also remain committed to company-wide cost reduction, including reducing COGS per vehicle. Ultimately, we are focused on profitable growth, including by leveraging existing factories and production lines to introduce new and more affordable products.
The future is not only electric, but also autonomous. We believe scaled autonomy is only possible with data from millions of vehicles and an immense AI training cluster. We have, and continue to expand, both. To make FSD (Supervised) 5 more accessible, we reduced the price of subscription to $99/month and the purchase price to $8,000 in the US.
- Excludes SBC (stock-based compensation), net of tax; (2) Free cash flow = operating cash flow less capex; (3) Includes cash, cash equivalents and investments; (4) Calculated by dividing Cost of Automotive Sales Revenue by respective quarter's new deliveries (ex-operating leases); (5)Active driver supervision required; does not make the vehicle autonomous.
F I N A N C I A L S U M M A R Y (Unaudited)
($ in millions, except percentages and per share data) | Q1-2023 | Q2-2023 | Q3-2023 | Q4-2023 | Q1-2024 | YoY |
Total automotive revenues | 19,963 | 21,268 | 19,625 | 21,563 | 17,378 | -13% |
Energy generation and storage revenue | 1,529 | 1,509 | 1,559 | 1,438 | 1,635 | 7% |
Services and other revenue | 1,837 | 2,150 | 2,166 | 2,166 | 2,288 | 25% |
Total revenues | 23,329 | 24,927 | 23,350 | 25,167 | 21,301 | -9% |
Total gross profit | 4,511 | 4,533 | 4,178 | 4,438 | 3,696 | -18% |
Total GAAP gross margin | 19.3% | 18.2% | 17.9% | 17.6% | 17.4% | -199 bp |
Operating expenses | 1,847 | 2,134 | 2,414 | 2,374 | 2,525 | 37% |
Income from operations | 2,664 | 2,399 | 1,764 | 2,064 | 1,171 | -56% |
Operating margin | 11.4% | 9.6% | 7.6% | 8.2% | 5.5% | -592 bp |
Adjusted EBITDA | 4,267 | 4,653 | 3,758 | 3,953 | 3,384 | -21% |
Adjusted EBITDA margin | 18.3% | 18.7% | 16.1% | 15.7% | 15.9% | -240 bp |
Net income attributable to common stockholders (GAAP) | 2,513 | 2,703 | 1,853 | 7,928 | 1,129 | -55% |
Net income attributable to common stockholders (non-GAAP) | 2,931 | 3,148 | 2,318 | 2,485 | 1,536 | -48% |
EPS attributable to common stockholders, diluted (GAAP) | 0.73 | 0.78 | 0.53 | 2.27 | 0.34 | -53% |
EPS attributable to common stockholders, diluted (non-GAAP) | 0.85 | 0.91 | 0.66 | 0.71 | 0.45 | -47% |
Net cash provided by operating activities | 2,513 | 3,065 | 3,308 | 4,370 | 242 | -90% |
Capital expenditures | (2,072) | (2,060) | (2,460) | (2,306) | (2,773) | 34% |
Free cash flow | 441 | 1,005 | 848 | 2,064 | (2,531) | -674% |
Cash, cash equivalents and investments | 22,402 | 23,075 | 26,077 | 29,094 | 26,863 | 20% |
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F I N A N C I A L S U M M A R Y
Revenue | Total revenue declined 9% YoY in Q1 to $21.3B. YoY, revenue was impacted by the following items: |
- reduced vehicle average selling price (ASP) YoY (excl. FX impact), including unfavorable impact of mix
- decline in vehicle deliveries, partially due to the Model 3 update in the Fremont factory and Giga Berlin production disruptions
- negative FX impact of $0.2B1
- growth in other parts of the business
- higher FSD revenue recognition YoY due to release of Autopark feature in North America
Profitability | Our operating income decreased YoY to $1.2B in Q1, resulting in a 5.5% operating margin. YoY, operating income was |
primarily impacted by the following items: | |
- reduced vehicle ASP due to pricing and mix | |
- increase in operating expenses partly driven by AI, cell advancements and other R&D projects | |
- cost of Cybertruck production ramp | |
- decline in vehicle deliveries, partially due to the Model 3 update in the Fremont factory and Giga Berlin production | |
disruptions | |
+ lower cost per vehicle, including lower raw material costs, freight and duties | |
+ gross profit growth in Energy Generation and Storage including IRA credit benefit | |
+ higher FSD revenue recognition YoY due to release of Autopark feature in North America |
Cash | Quarter-end cash, cash equivalents and investments in Q1 was $26.9B. The sequential decrease of $2.2B was a result of |
negative free cash flow of $2.5B, driven by an inventory increase of $2.7B and AI infrastructure capex of $1.0B in Q1. |
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(1) Impact is calculated on a constant currency basis. Actuals are compared against current results converted into USD using average exchange rates from Q1'23.
O P E R A T I O N A L S U M M A R Y (Unaudited)
Q1-2023 | Q2-2023 | Q3-2023 | Q4-2023 | Q1-2024 | YoY | |
Model 3/Y production | 421,371 | 460,211 | 416,800 | 476,777 | 412,376 | -2% |
Other models production | 19,437 | 19,489 | 13,688 | 18,212 | 20,995 | 8% |
Total production | 440,808 | 479,700 | 430,488 | 494,989 | 433,371 | -2% |
Model 3/Y deliveries | 412,180 | 446,915 | 419,074 | 461,538 | 369,783 | -10% |
Other models deliveries | 10,695 | 19,225 | 15,985 | 22,969 | 17,027 | 59% |
Total deliveries | 422,875 | 466,140 | 435,059 | 484,507 | 386,810 | -9% |
of which subject to operating lease accounting | 22,357 | 21,883 | 17,423 | 10,563 | 8,365 | -63% |
Total end of quarter operating lease vehicle count | 153,988 | 168,058 | 176,231 | 176,564 | 173,131 | 12% |
Global vehicle inventory (days of supply)(1) | 15 | 16 | 16 | 15 | 28 | 87% |
Storage deployed (MWh) | 3,889 | 3,653 | 3,980 | 3,202 | 4,053 | 4% |
Tesla locations | 1,000 | 1,068 | 1,129 | 1,208 | 1,258 | 26% |
Mobile service fleet | 1,692 | 1,769 | 1,846 | 1,909 | 1,897 | 12% |
Supercharger stations | 4,947 | 5,265 | 5,595 | 5,952 | 6,249 | 26% |
Supercharger connectors | 45,169 | 48,082 | 51,105 | 54,892 | 57,579 | 27% |
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(1)Days of supply is calculated by dividing new vehicle ending inventory by the relevant quarter's deliveries and using 75 trading days (aligned with Automotive News definition).
V E H I C L E C A P A C I T Y
A sequential decline in volumes was partially caused by the early phase of the production ramp of the updated Model 3 at our Fremont factory and factory shutdowns at Gigafactory Berlin resulting from shipping diversions caused by the Red Sea conflict and from an arson attack.
US: California, Nevada and Texas
Model 3 production in Fremont was down sequentially as we changed the production line to the updated model. Sequentially, Model Y production at Gigafactory Texas increased to an all-time high, while COGS per unit improved to an all-time low. The Cybertruck ramp continued successfully at Gigafactory Texas, with a sequential cost improvement in Q1. We produced over 1,000 Cybertrucks in a single week in April.
China: Shanghai
Production at Gigafactory Shanghai was down sequentially due to seasonality and planned shutdowns around Chinese New Year in Q1. Demand typically improves throughout the year. As we enter new markets, such as Chile, many of them will be supplied from Gigafactory Shanghai.
Europe: Berlin-Brandenburg
Model Y production in Berlin was down sequentially due to impacts from the Red Sea conflict and the arson attack that impacted the factory. Despite idle capacity charges and other costs from production disruptions, COGS per unit continued to decline sequentially.
Current Installed Annual Vehicle Capacity
Region | Model | Capacity | Status |
California | Model S / Model X | 100,000 | Production |
Model 3 / Model Y | >550,000 | Production | |
Shanghai | Model 3 / Model Y | >950,000 | Production |
Berlin | Model Y | >375,000 | Production |
Texas | Model Y | >250,000 | Production |
Cybertruck | >125,000 | Production | |
Nevada | Tesla Semi | - | Pilot production |
Various | Next Gen Platform | - | In development |
TBD | Roadster | - | In development |
Installed capacity ≠ current production rate and there may be limitations discovered as production rates approach capacity. Production rates depend on a variety of factors, including equipment uptime, component supply, downtime related to factory upgrades, regulatory considerations and other factors.
US/Canada Europe China
4%
3%
2%
1%
0%
Market share of Tesla vehicles by region (TTM)
Source: Tesla estimates based on latest available data from ACEA; Autonews.com; CAAM - light- | |
7 | duty vehicles only; TTM = Trailing twelve months |
C O R E T E C H N O L O G Y
Artificial Intelligence Software and Hardware
We have been investing in the hardware and software ecosystems necessary to achieve vehicle autonomy and a ride-hailing service. We believe a scalable and profitable autonomy business can be realized through a vision-only architecture with end-to-end neural networks, trained on billions of miles of real-world data. Since the launch of FSD (Supervised) V12 earlier this year, it has become clear that this architecture long pursued by Tesla is the right solution for scalable autonomy. To further improve our end-to-end training capability, we will continue to increase our core AI infrastructure capacity in the coming months. In Q1, we completed the transition to Hardware 4.0, our latest in-vehicle computer with increased inference processing power and improved cameras.
Vehicle and Other Software
We rolled out FSD (Supervised) with a 30-day free trial to eligible cars in U.S. and Canada. FSD (Supervised) can change lanes, select forks to follow routes, navigate around vehicles and objects and make turns. We released Autopark to existing eligible FSD (Supervised) and Enhanced Autopilot customers. We are currently working on ride-hailing functionality that will be available in the future. We believe the Tesla software experience is best-in-class across all our products, and plan to seamlessly layer ride-hailing into the Tesla App.
Battery, Powertrain & Manufacturing
4680 ramp continued successfully in Q1 and continues to stay ahead of the Cybertruck ramp. Costs continued to come down sequentially as scrap, yield and production rate improved.
1.4
FSD V12 Miles | FSD Miles | |
1.2
1.0
0.8
0.6
0.4
0.2
0.0
Cumulative miles driven with FSD Beta (billions; as of Apr-21-24)
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
Tesla AI Training Capacity (H100 Equivalent GPUs)
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O T H E R H I G H L I G H T S
Our non-automotive business is becoming an increasingly profitable part of Tesla. As Megapack continues to ramp and as our fleet continues to grow, we are expecting consistent profit growth of our non-automotive business.
Energy Generation and Storage
Energy storage deployments increased sequentially in Q1 to a record 4.1 GWh. Energy Generation and Storage revenue and gross profit also achieved an all-time high in Q1. Revenues were up 7% YoY and gross profit was up 140% YoY, driven by increased Megapack deployments, partially offset by a decrease in solar deployments. Energy Generation and Storage remains our highest margin business. Our second general assembly line is now commissioned, and we continue to ramp our 40 GWh Megafactory in Lathrop, CA toward full capacity.
Services and Other
Services and Other revenue grew 25% YoY in Q1, while gross profit was down 40% YoY. The biggest driver of gross profit reduction YoY was lower used vehicle profit, partially offset by growth in gross profit from part sales.
Starting at the end of February, we began opening our North American Supercharger Network to more non-Tesla EV owners. We will continue to onboard OEMs who have committed to NACS over the coming quarters, while also opening more sites to other EVs in regions outside North America, both of which should drive incremental revenue and profit generation.
600
500
400
300
200
100
0
-100-200
Non-Automotive gross profit ($M)
4
3
2
1
0
Energy Storage deployments (GWh)
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O U T L O O K
Volume | Our company is currently between two major growth waves: the first one began with the global expansion of the Model |
3/Y platform and we believe the next one will be initiated by advances in autonomy and introduction of new products, | |
including those built on our next generation vehicle platform. In 2024, our vehicle volume growth rate may be notably | |
lower than the growth rate achieved in 2023, as our teams work on the launch of the next generation vehicle and other | |
products. In 2024, the growth rates of energy storage deployments and revenue in our Energy Generation and Storage | |
business should outpace the Automotive business. | |
Cash | We have sufficient liquidity to fund our product roadmap, long-term capacity expansion plans and other expenses. |
Furthermore, we will manage the business such that we maintain a strong balance sheet during this uncertain period. | |
Profit | While we continue to execute on innovations to reduce the cost of manufacturing and operations, over time, we expect |
our hardware-related profits to be accompanied by an acceleration of AI, software and fleet-based profits. | |
Product | We have updated our future vehicle line-up to accelerate the launch of new models ahead of our previously |
communicated start of production in the second half of 2025. | |
These new vehicles, including more affordable models, will utilize aspects of the next generation platform as well as | |
aspects of our current platforms, and will be able to be produced on the same manufacturing lines as our current vehicle | |
line-up. | |
This update may result in achieving less cost reduction than previously expected but enables us to prudently grow our | |
vehicle volumes in a more capex efficient manner during uncertain times. This would help us fully utilize our current | |
expected maximum capacity of close to three million vehicles, enabling more than 50% growth over 2023 production | |
before investing in new manufacturing lines. | |
Our purpose-built robotaxi product will continue to pursue a revolutionary "unboxed" manufacturing strategy. |
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Tesla Inc. published this content on 23 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 April 2024 20:04:58 UTC.
