

Investor's Corner
Tesla Q2 2024 earnings results: TSLA beats revenue, misses EPS estimates
Tesla (NASDAQ:TSLA) posted its Q2 2024 earnings report after markets closed today. The results, which were discussed in the Q2 2024 Update Letter, were released after the closing bell on Wednesday, July 23, 2024.
During the second quarter, Tesla produced 410,831 vehicles and delivered 443,956 vehicles worldwide, comprised of 422,405 Model 3 sedans and Model Y crossovers. In comparison, Wall Street analysts expected Tesla to report 438,019 vehicle deliveries.
Q2 2024 Shareholder Update → https://t.co/sXBSeLiJIj
— Highlights
We continued to expand our vehicle lineup globally, with new trims of Model 3 & Y as well as new S3XY paint options.
Vehicle
– Refreshed Model 3 ramp continued successfully
– We also continue to qualify more… pic.twitter.com/2UuLhlmjvD— Tesla (@Tesla) July 23, 2024
The following is a quick overview of Tesla’s Q2 2024 earnings results.
REVENUE
In the second quarter of 2024, Tesla posted total revenues of $25.5 billion, with automotive revenues at $19.878 billion. FactSet consensus pointed to Tesla posting revenue of $24.5 billion in Q2 2024, while Zacks estimated Tesla to report $25.13 billion in revenue.
Overall, Tesla’s total revenue increased 2% year-over-year, thanks in part to factors such as growth in the company’s energy generation and storage business, Cybertruck deliveries, and higher regulatory credit revenue, among others.
EARNINGS PER SHARE
Tesla’s non-GAAP earnings per share for the second quarter of 2024 was listed at $0.52, while GAAP EPS for Q2 2024 was listed at $0.42. In comparison, FactSet consensus suggested that Tesla would see earnings per share of $0.61 and Zacks expected quarterly earnings of $0.62 per share.
PROFITABILITY
Tesla posted $1.6 billion GAAP operating income in Q2 after restructuring and other charges of $600 million. The electric vehicle maker saw $1.5 billion in GAAP net income and $1.8 billion non-GAAP net income in Q2 2024.
Tesla noted that its operating income decreased year-over-year to $1.6 billion in Q2, resulting in a 6.3% operating margin. This was due in part to reduced S3XY vehicle ASP, restructuring charges, and an increase in operating expenses largely driven by AI projects, to name a few.
CASH
Tesla’s quarter-end cash, cash equivalents, and investments in the second quarter of 2024 was $30.7 billion. The company noted that the sequential increase of $3.9 billion was the result of positive free cash flow of $1.3 billion, which was, in turn, driven by an inventory decrease of $1.8 billion and partially offset by AI infrastructure capex of $600 million in Q2 2024.
Tesla, however, highlighted that it has “sufficient liquidity to fund our product roadmap, long-term capacity expansion plans, and other expenses.” The company also noted that it “will manage the business such that we maintain a strong balance sheet during this uncertain period.”
Below is Tesla’s Q2 2024 Update Letter.
TSLA-Q2-2024-Update by Simon Alvarez on Scribd
Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.
Investor's Corner
Tesla gets $475 price target from Benchmark amid initial Robotaxi rollout
Tesla’s limited rollout of its Robotaxi service in Austin is already catching the eye of Wall Street.

Venture capital firm Benchmark recently reiterated its “Buy” rating and raised its price target on Tesla stock (NASDAQ: TSLA) from $350 to $475 per share, citing the company’s initial Robotaxi service deployment as a sign of future growth potential.
Benchmark analyst Mickey Legg praised the Robotaxi service pilot’s “controlled and safety-first approach,” adding that it could help Tesla earn the trust of regulators and the general public.
Confidence in camera-based autonomy
Legg reiterated Benchmark’s belief in Tesla’s vision-only approach to autonomous driving. “We are a believer in Tesla’s camera-focused approach that is not only cost effective but also scalable,” he noted.
The analyst contrasted Tesla’s simple setup with the more expensive hardware stacks used by competitors like Waymo, which use various sophisticated sensors that hike up costs, as noted in an Investing.com report. Compared to Tesla’s Model Y Robotaxis, Waymo’s self-driving cars are significantly more expensive.
He also pointed to upcoming Texas regulations set to take effect in September, suggesting they could help create a regulatory framework favorable to autonomous services in other cities.
“New regulations for autonomous vehicles are set to go into place on Sept. 1 in TX that we believe will further help win trust and pave the way for expansion to additional cities,” the analyst wrote.
Tesla as a robotics powerhouse
Beyond robotaxis, Legg sees Tesla evolving beyond its roots as an electric vehicle maker. He noted that Tesla’s humanoid robot, Optimus, could be a long-term growth driver alongside new vehicle programs and other future initiatives.
“In our view, the company is undergoing an evolution from a trailblazing vehicle OEM to a high-tech automation and robotics company with unmatched domestic manufacturing scale,” he wrote.
Benchmark noted that Tesla stock had rebounded over 50% from its April lows, driven in part by easing tariff concerns and growing momentum around autonomy. With its initial Robotaxi rollout now underway, the firm has returned to its previous $475 per share target and reaffirmed TSLA as a Benchmark Top Pick for 2025.
Elon Musk
Tesla blacklisted by Swedish pension fund AP7 as it sells entire stake
A Swedish pension fund is offloading its Tesla holdings for good.

Tesla shares have been blacklisted by the Swedish pension fund AP7, who said earlier today that it has “verified violations of labor rights in the United States” by the automaker.
The fund ended up selling its entire stake, which was worth around $1.36 billion when it liquidated its holdings in late May. Reuters first reported on AP7’s move.
Other pension and retirement funds have relinquished some of their Tesla holdings due to CEO Elon Musk’s involvement in politics, among other reasons, and although the company’s stock has been a great contributor to growth for many funds over the past decade, these managers are not willing to see past the CEO’s right to free speech.
However, AP7 says the move is related not to Musk’s involvement in government nor his political stances. Instead, the fund said it verified several labor rights violations in the U.S.:
“AP7 has decided to blacklist Tesla due to verified violations of labor rights in the United States. Despite several years of dialogue with Tesla, including shareholder proposals in collaboration with other investors, the company has not taken sufficient measures to address the issues.”
Tesla made up about 1 percent of the AP7 Equity Fund, according to a spokesperson. This equated to roughly 13 billion crowns, but the fund’s total assets were about 1,181 billion crowns at the end of May when the Tesla stake was sold off.
Tesla has had its share of labor lawsuits over the past few years, just as any large company deals with at some point or another. There have been claims of restrictions against labor union supporters, including one that Tesla was favored by judges, as they did not want pro-union clothing in the factory. Tesla argued that loose-fitting clothing presented a safety hazard, and the courts agreed.

(Photo: Tesla)
There have also been claims of racism at the Fremont Factory by a former elevator contractor named Owen Diaz. He was awarded a substantial sum of $137m. However, U.S. District Judge William Orrick ruled the $137 million award was excessive, reducing it to $15 million. Diaz rejected this sum.
Another jury awarded Diaz $3.2 million. Diaz’s legal team said this payout was inadequate. He and Tesla ultimately settled for an undisclosed amount.
AP7 did not list any of the current labor violations that it cited as its reason for
Investor's Corner
xAI targets $5 billion debt offering to fuel company goals
Elon Musk’s xAI is targeting a $5B debt raise, led by Morgan Stanley, to scale its artificial intelligence efforts.

xAI’s $5 billion debt offering, marketed by Morgan Stanley, underscores Elon Musk’s ambitious plans to expand the artificial intelligence venture. The xAI package comprises bonds and two loans, highlighting the company’s strategic push to fuel its artificial intelligence development.
Last week, Morgan Stanley began pitching a floating-rate term loan B at 97 cents on the dollar with a variable interest rate of 700 basis points over the SOFR benchmark, one source said. A second option offers a fixed-rate loan and bonds at 12%, with terms contingent on investor appetite. This “best efforts” transaction, where the debt size hinges on demand, reflects cautious lending in an uncertain economic climate.
According to Reuters sources, Morgan Stanley will not guarantee the issue volume or commit its own capital in the xAI deal, marking a shift from past commitments. The change in approach stems from lessons learned during Musk’s 2022 X acquisition when Morgan Stanley and six other banks held $13 billion in debt for over two years.
Morgan Stanley and the six other banks backing Musk’s X acquisition could only dispose of that debt earlier this year. They capitalized on X’s improved operating performance over the previous two quarters as traffic on the platform increased engagement around the U.S. presidential elections. This time, Morgan Stanley’s prudent strategy mitigates similar risks.
Beyond debt, xAI is in talks to raise $20 billion in equity, potentially valuing the company between $120 billion and $200 billion, sources said. In April, Musk hinted at a significant valuation adjustment for xAI, stating he was looking to put a “proper value” on xAI during an investor call.
As xAI pursues this $5 billion debt offering, its financial strategy positions it to lead the AI revolution, blending innovation with market opportunity.
-
News5 days ago
Tesla Robotaxi’s biggest challenge seems to be this one thing
-
News2 weeks ago
Tesla confirms massive hardware change for autonomy improvement
-
Elon Musk2 weeks ago
Elon Musk slams Bloomberg’s shocking xAI cash burn claims
-
News2 weeks ago
Tesla features used to flunk 16-year-old’s driver license test
-
News2 weeks ago
Texas lawmakers urge Tesla to delay Austin robotaxi launch to September
-
News2 weeks ago
Tesla China roars back with highest vehicle registrations this Q2 so far
-
News2 weeks ago
Tesla dominates Cars.com’s Made in America Index with clean sweep
-
News2 weeks ago
Tesla’s Grok integration will be more realistic with this cool feature