$Tesla Motors(TSLA)$ Q2 revenue beat expectations and achieved a surprising year-over-year growth, hitting a record high. However, net profit and earnings per share (EPS) fell short of expectations, with Non-GAAP net profit down 42% year-over-year, marking the lowest profit margin in five years. Additionally, the Robotaxi event has been postponed to October 10.
Key Q2 Metrics:
Revenue: $25.5 billion, up 2% year-over-year, beat the expected $24.77 billion.
Operating Income: $1.6 billion, down 33% year-over-year, below the expected $1.81 billion.
Non-GAAP Net Income: $1.8 billion, down 42% year-over-year, below the expected $2.184 billion.
Non-GAAP EPS: $0.52, below the expected $0.62.
Business Segment Performance:
Revenue increased 2% to $25.5 billion, but automotive sales dropped 7% to $19.9 billion.
Revenue in Tesla’s energy generation and storage business, which sells and installs big backup batteries for residential, commercial and utility use, almost doubled from the same quarter a year ago to just over $3 billion., driving overall revenue growth and gross margin recovery.
The increased expenditure on AI projects and substantial Q2 layoffs compensation dragged down the operating profit margin.
Tesla noted that although automotive deliveries declined year-over-year in Q2, the results improved compared to Q1, with production expected to increase quarter-over-quarter in Q3.
Tesla said Cybertruck production more than tripled compared to Q1, and the vehicle is on track to "achieve profitability" by the end of the year. Tesla said its Semi factory is also on track to begin production by the end of 2025
The low-cost vehicles are on track for production in the first half of 2025.
Tesla also said its growth rate in 2024 would be "notably lower" than what it achieved in 2023. but the growth rate of energy product deployments and energy business revenue will surpass that of the automotive business.
The company would reveal its robotaxi on October 10th, which was originally slated for August 8th. Musk said the extra time would allow Tesla to add "a couple other things" to the robotaxi prior to its unveil.
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