Tesla Q2 2024 Financial Statement Summary.
- Tesla’s Q2 2024 Revenue Ratio
Car sales: 77.9%
Energy generation and storage sales: 11.8%
Services and other sales: 10.2%
- What Is Tesla’s Share of Energy Sales For Each Quarter?
2Q 2023: 6.05%
Q3 2023: 6.68%
Q4 2023: 5.71%
Q1 2024: 7.68%
2Q 2024: 11.82%
The share of energy sales is steadily rising.
- What is Tesla’s energy sector margin for Q2 2024?
Revenue from Energy Generation and Storage Division: $3.014 billion
ENERGY GENERATION AND STORAGE SECTION COST: $2.274 BILLION
ENERGY GENERATION AND STORAGE SEGMENT’S Gross Profit: $740 MILLION
Energy sector margin stands at 24.6%.
- Tesla’s Future Energy Business Plan
4.1 Increase energy storage deployments:
Tesla achieves record 9.4 GWh energy storage deployment in Q2 2024.
It will continue to increase.
4.2 Expanding production capacity:
Lathrop Mega Factory and Shanghai Mega Factory continue to expand their production capacity.
SHANGHAI MEGA FACTORY WILL START PRODUCTION IN Q1 2025.
4.3 Expand global installation:
Tesla plans to adjust its deployment in line with project milestones and logistics timings to increase global installations.
In addition to the U.S., the rollout of Powerwall 3 is successfully underway in Canada, the U.K., and Germany.
4.4 Improve profitability:
Tesla Expects Non-Automotive Business’ Profitability To Continue To Increase As Deployment Of Energy Storage Products Grow
4.5 Development and release of new products:
Tesla continues to develop new technologies related to energy storage products, and is working to increase the efficiency of its energy solutions in the future. Through this, it plans to provide a wide range of energy solutions to more customers
5.Let’s compare the battery capacity of one Tesla Megapack with the battery capacity of the Tesla Model Y.
Mega Pack’s Battery Capacity: The Tesla Mega Pack has a battery capacity of approximately 3.9 MWh (3,900 kWh) per unit.
Model Y Long Range Battery Capacity:
Tesla Model Y Long Range Approximately 84.96 kWh
Model Y Long Range 45.9 units per Mega Pack.
Tesla Mega Pack Installation Volume 9.4 GWh In Q2 2024
If you convert this into a long range of Model Y, 110,640 units
- Tesla’s Quarterly Energy Revenue Growth Rate
Q2 2023: 1509 (US$ Million)
Q3 2023: 1559 QoQ 3.31%
Q4 2023: 1438 QoQ -7.76%
Q1 2024: 1635 QoQ 13.70%
Q2 2024: 3014 QoQ 84.34% YoY 100%
- Restructuring costs are one-time costs, while regulatory credit sales are persistent.
Tesla made about $1.79 billion in revenue in 2023 from sales of regulatory credits, which sold excess credits Tesla earned from producing and selling electric vehicles to other carmakers.
Tesla has generated more than $9 billion in total from these credit sales since 2009.
Regulatory credits are mainly purchased by manufacturers that do not meet strict emissions regulations around the world.
These credits are used in the European Union, the United States, and China, which are becoming an important vehicle for automakers to comply with emissions regulations.
Many companies, including Ford, GM, Volkswagen, Honda and Jaguar Land Rover, have been meeting regulations by purchasing credits from Tesla.
When legacy automakers pull out of the EV market, they will have to buy more credits to meet emissions regulations.
This provides an opportunity for EV makers like Tesla to continue to turn a profit.
- Tesla Why Did Regulatory Credit Sales Rise Significantly In Its Quarterly Earnings Release?
Tougher Emissions Regulations: Tougher emissions regulations in Europe, the U.S., China and elsewhere have forced many automakers to purchase Tesla’s regulatory credits to meet emissions standards. This has significantly impacted sales growth in regulatory credits.
Rival EV Transition Delays: Several traditional automakers are struggling to transition to EVs, and as a result, they continue to buy Tesla’s credits to meet emissions regulations.
Volkswagen and General Motors, for example, have been struggling to meet EV targets and are buying credits from Tesla.
For Ford, the earnings call shows how difficult it is for legacy companies to transition to EVs.
Ford Modele: Revenue of $1.1 billion (-61% YoY) and EBITDA of $1.1 billion (continued in the red), Margin-100%
EV Sales Of 260,000 Units (-23.5% YoY),
360,000 units in the first half (-21.7% YoY)
Tesla’s ability to secure ongoing credits: Tesla is steadily securing regulatory credits through EV production, which it sells to other manufacturers. This means Tesla has taken those credits to nearly 100% profit.
EV Sales Rise: Tesla’s EV Sales Rise Also Contributes to Increased Regulatory Credit Sales.
By selling more electric vehicles, we were able to earn additional regulatory credits, which we were able to sell to other carmakers.
9.So when will Tesla energy sales be recognized on Wall Street and the growth will be reflected in the stock price?
9.1 Increase in sales share -> When sales share is 30% or more
9.2 Profitability improvement ->It’s not bad now, but it’s a margin of 25% or higher
9.3 Expanding Market Share ->
As of 2023, Tesla’s Megapacks hold an estimated 30% share of the global battery energy storage system (BESS) market. This means Tesla is supplying a major portion of the global battery storage capacity.
9.4 Change in investor perception -> The proportion of sales and growth should increase.
9.5 Policy and Regulatory Support ->Able to follow the trend of the times
- 4680 battery production up 50% quarter-on-quarter
If Tesla succeeds in producing its own 4680 batteries, it could benefit from a number of benefits.
10.