Tesla Q4 2024 Earnings Call: The Top Takeaways You Might Have Missed
If you blinked, you might have missed some of the groundbreaking insights from Tesla's latest Q4 2024 earnings call.
Here's a digestible rundown that captures the essence of Tesla's current trajectory and future aspirations:
Autonomous Driving on the Horizon
Unsupervised Ride-Hail: The introduction of unsupervised ride-hail in Texas is set for June 2025, marking a significant step towards a fully autonomous future. Other cities and states will follow rapidly.
FSD Expansion: Unsupervised Full Self-Driving (FSD) is planned for California and other regions in 2025, with a global rollout expected by 2026. This expansion not only showcases Tesla's confidence in its technology but also hints at a broader market penetration.
FSD Licensing: Tesla's FSD technology is catching the eye of multiple Original Equipment Manufacturers (OEMs), suggesting a potential new revenue stream through licensing.
FSD AI 3: Cars will be upgraded for those who paid for FSD.
The Optimus Revolution
Design and Production: The Optimus robot, Tesla's venture into robotics, is slated for a production design update in 2026. However, the company aims to produce 10,000 units by the end of 2025, with an ambitious scaling plan from 10K to 100K, up to potentially 100 million per year. As Cern says - NOTHING ELSE MATTERS! He must be a Metallica fan!
Pricing and Value: With an anticipated COGS at $20,000, Optimus is poised to disrupt the robotics market. Elon Musk believes it could become "most of the company's value," indicating a massive shift in Tesla's valuation focus.
Energy and Infrastructure Growth
Energy Storage Surge: Tesla's energy storage deployments have seen a staggering 244% year-over-year increase, reaching 11.0 GWh, underscoring their commitment to sustainable energy solutions.
Future Projects: Plans for a third Megafactory are in place, with the expectation that the demand for grid energy storage will significantly boost Megapack sales.
Superchargers: Also growing rapidly - saving 20 million barrels of Gasoline!
Financial & Production Milestones
Deliveries and Revenue: Tesla achieved record deliveries of 495,570 vehicles, with revenue holding steady at $25.7 billion, both marking a 2% year-over-year growth. The average vehicle COGS also dipped below $35,000, showcasing crazy scaling and cost efficiencies.
I REPEAT The Sub $35,000 Avg Cost per Car is INSANE
Financial Health: With cash reserves swelling to $36.6 billion, Tesla's financial position looks robust, up 26% from the previous year.
Also they embraced the new FASB accounting rule marking Bitcoin to Market - 26% of their earnings this quarter came from unrealized $BTC gains. Totally cool.
What's Next for Tesla?
Pivotal Year Ahead: 2025 is described as a "pivotal year," with significant developments expected across all fronts, from autonomous driving to energy solutions.
Cybertruck and AI: The ramp-up of Cybertruck production is now at 125K units per year and the deployment of a 50K GPU cluster for Cortex AI indicate Tesla's continuous innovation drive.
Meet Cortex
Miscellaneous Tidbits
Accounting Changes: Tesla has adopted new FASB standards for Bitcoin price changes, reflecting its interest in cryptocurrencies. Wen MSTR???
Autonomous Semi: The semi-truck with FSD capabilities could tackle the driver shortage, offering a glimpse into future logistics solutions.
Lidar Debate: Elon Musk's stance on Lidar remains unchanged, calling it a "fool's errand" in the pursuit of autonomous driving. Moron Stanley asked the dumbest questions - literally. Wall St WTF???
SUMMARY
This earnings call sets the stage for what could be an era-defining year in 2025. Biggest year ever - with a focus on autonomy, robotics, and sustainable energy, Tesla is not just innovating; it's redefining the automotive and technology landscapes for the future. As Elon said 2025 is the revolution, 2026 and 2027 will be nuts in terms of returns.
What is this worth I hear you say - well, here you go.
