Release Date: January 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Tesla Inc (TSLA, Financial) achieved record vehicle production and deliveries in Q4 2024, with an annualized rate of nearly 2 million vehicles.
- Model Y was the best-selling vehicle of any kind globally in 2024.
- Significant investments in manufacturing, AI, and robotics in 2024 are expected to yield substantial future benefits.
- Tesla Inc (TSLA) plans to launch unsupervised full self-driving as a paid service in Austin by June 2025.
- Energy storage deployments reached an all-time high in Q4 2024, with expectations of at least 50% growth in 2025.
Negative Points
- Automotive margins declined quarter-over-quarter due to lower average selling prices and the impact of FSD-related revenue recognition.
- The transition to the new Model Y will result in several weeks of lost production, impacting margins due to idle capacity.
- Tesla Inc (TSLA) faces battery pack constraints, which are limiting growth in annual vehicle volumes.
- Operating expenses increased year-over-year and sequentially, driven by R&D investments and sales and marketing efforts.
- There is uncertainty around tariffs and their potential impact on Tesla Inc (TSLA)'s business and profitability.
Q & A Highlights
Q: Is unsupervised FSD still planned to be released in Texas and California this year? What hurdles still exist to make that happen?
A: Elon Musk, CEO, confirmed that unsupervised FSD is planned for release in California this year, with expectations to expand to many regions across the US by year-end. The main hurdle is ensuring safety levels significantly above the average human driver, as any accidents involving autonomous cars tend to receive worldwide attention.
Q: Are there any discussions with other auto companies about licensing FSD?
A: Elon Musk, CEO, stated there is significant interest from major car companies in licensing Tesla's FSD technology. However, Tesla will only consider high-volume partnerships and will not engage in detailed discussions until unsupervised FSD is operational across the US.
Q: Is Optimus now mostly design-locked for 2025 production?
A: Elon Musk, CEO, explained that Optimus is not design-locked and is rapidly evolving. The focus is on developing the necessary components and scaling production, with the aim to produce several thousand units this year and ramp up significantly in the future.
Q: What is the status on mass production of the Tesla Semi, and how will it impact revenue and scale?
A: Lars Moravy, VP of Vehicle Engineering, mentioned that the Tesla Semi factory in Reno is progressing, with high-volume production expected to begin in late 2025 and ramping up in early 2026. The Semi is expected to be a cost-effective solution, contributing significantly to Tesla's revenue.
Q: Has Tesla given up on ramping their solar roof product?
A: Elon Musk, CEO, confirmed that the solar roof remains a core part of Tesla's residential product portfolio. The focus is on making the product easier to install and distributing it through a network of certified installers, especially for new builds or roof replacements.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
