this post was submitted on 30 Jan 2025
582 points (98.3% liked)

Technology

61227 readers
4102 users here now

This is a most excellent place for technology news and articles.

Our Rules

  1. Follow the lemmy.world rules.
  2. Only tech related content.
  3. Be excellent to each other!
  4. Mod approved content bots can post up to 10 articles per day.
  5. Threads asking for personal tech support may be deleted.
  6. Politics threads may be removed.
  7. No memes allowed as posts, OK to post as comments.
  8. Only approved bots from the list below, to ask if your bot can be added please contact us.
  9. Check for duplicates before posting, duplicates may be removed
  10. Accounts 7 days and younger will have their posts automatically removed.

Approved Bots

founded 2 years ago
MODERATORS
L3s@lemmy.world
enu@lemmy.world
technopagan@lemmy.world
L4s@lemmy.world
582
Tesla’s 2024 financial results are out—and they’re terrible (arstechnica.com)
submitted 1 day ago by Xatolos@reddthat.com to c/technology@lemmy.world
112 comments fedilink hide all child comments
 

AI Summary:

Tesla's 2024 financial results were disappointing, with several key points highlighted:

  • Automotive Revenues: Fell by 8% in Q4 2024 compared to Q4 2023, totaling $19.8 billion.
  • Energy and Storage Revenues: More than doubled, growing by 113% to $3 billion in Q4 2024.
  • Services: Grew by 31% in Q4 2024, contributing $2.8 billion.
  • Total Revenue: Increased by 2% in Q4 2024, but income fell by 23%, with an operating margin of 6.2%.
  • Net Profits: Dropped by 71% to $2.3 billion in Q4 2024.
  • Annual Performance: Automotive revenues decreased by 6% to $77 billion in 2024. Energy generation and storage increased by 67% to $10 billion. Services grew by 27%, bringing in $10.5 billion.
  • Gross Profits: Fell by 1%, with net profits dropping by 53% to $7.1 billion for the year.
  • Free Cash Flow: Decreased by 18% to $3.6 billion.
  • Regulatory Credits: $2.8 billion of profit came from selling regulatory credits, not from core business activities.
  • Future Predictions: Tesla expects energy storage revenues to grow by at least 50% year-over-year and aims to grow automotive sales by more than 60% in 2025.

Despite the poor financial results, Tesla's share price increased by 103% over the same period.

you are viewing a single comment's thread
view the rest of the comments
[–] vga@sopuli.xyz 8 points 11 hours ago* (last edited 11 hours ago) (3 children)

Net profits $2.3B. "Poor financial results". How does one reconcile these two things?

But yeah, I live in a country that has had about 0% growth since 2008 :-| Perhaps this is bad news for you rich yankees.

Also note that the automotive industry seems to be pretty much flatlining for the last 5 years or so: https://www.vettafi.com/indexing/index/autos -- so Tesla is not doing particurarily badly in the large picture.

[–] iii@mander.xyz 15 points 10 hours ago* (last edited 10 hours ago)

Net profits $2.3B. "Poor financial results". How does one reconcile these two things?

That's 2.3B USD on a 1.29T USD valuation, or 0.17%.

Valuations should be reflective of expected future profits. Multiples of ×20 yearly profit are possible for risky (tech or biotech usually) companies, with large potential profit. But the ratio is ridiculously off the charts for tesla. If it does not improve, it will have turned out to have been a very wastefull use of capital.

[–] sirboozebum@lemmy.world 7 points 10 hours ago* (last edited 10 hours ago)

The issue is the price to earnings ratio of the Tesla stock which is almost 200:1.

The level of profit is not bad for a normally price company but Telsa needs to have profits grow exponentially to justify their stock price.

[–] tekato@lemmy.world 2 points 11 hours ago

It used to be double that, so I can see why people see it as a bad thing. But I also don’t think 7.1B profits qualifies as “poor financial results”, even if it used to be higher.