Tesla reported record Q4 2024 vehicle deliveries and emphasized investments in manufacturing and AI
From Nasdaq: 2025-01-29 21:30:18
Tesla reported record vehicle deliveries in Q4 2024, with an annualized rate of nearly 2 million vehicles. Model Y was the best-selling vehicle of 2024. CEO Elon Musk emphasized investments in manufacturing, AI, and robotics that will lead to future success. Musk predicts Tesla could become the most valuable company globally with a focus on autonomous vehicles and robots.
Musk highlighted the exponential progress of Tesla’s self-driving technology, urging skeptics to try it for themselves. He emphasized the potential for autonomous vehicles to increase utility, with cars being utilized for a third of the week, up from just 10 hours currently. Musk predicts an epic 2026, followed by successful years in 2027 and 2028, driven by advancements in autonomy and manufacturing. Elon Musk predicts the largest asset value increase in history, citing autonomy as a reality. Tesla aims to address battery pack constraints this year, with exponential growth projected for ’27 and ’28. Safety improvements in full self-driving are noted, with a goal of launching unsupervised full self-driving in Austin by June. Optimus humanoid robots could generate over $10 trillion in revenue. Musk acknowledges the uncertainty of Optimus production timelines but remains confident in Tesla’s progress. Elon Musk discusses plans to ramp up production of Optimus humanoid robots by an order of magnitude per year, aiming for 100 million units annually in the future. Optimus is designed with cutting-edge technology, including advanced hand precision for tasks like playing the piano and threading needles. Musk predicts Optimus will become the company’s most valuable asset.
Tesla’s CFO, Vaibhav Taneja, highlights the company’s record vehicle deliveries and energy storage deployments in Q4. Tesla achieved volume growth in automotive and energy sectors, notably setting delivery records in Greater China amidst a competitive market. Margins were impacted by lower ASPs and transition costs for the new Model Y, with production ramp challenges anticipated.
2025 is projected to be a pivotal year for Tesla, with the launch of unsupervised full self-driving and groundbreaking AI technology. Musk believes this milestone could surpass the significance of previous Tesla models like the Model S and Model 3. The company’s focus on real-world AI sets them apart, with Musk asserting Tesla’s dominance in the field. Tesla plans to introduce new products in 2025, starting with a more affordable model in the first half of the year. Energy storage deployments hit record highs in Q4, with anticipated 50% growth year over year. Operating expenses rose due to R&D investments in AI. Free cash flow for the quarter was $2 billion, with plans for flat capex in 2025. Musk aims to release unsupervised FSD in multiple U.S. regions this year, with interest from major car companies in licensing Tesla’s technology. Elon Musk discussed the importance of designing for manufacturing and the challenges of scaling production during a recent Tesla conference call. Musk emphasized the need for real-world AI and the ability to scale manufacturing to millions of units per year, highlighting the complexity of production beyond just creating prototypes. The Tesla team is rapidly evolving in a positive direction, with Optimus not yet design-locked for 2025 production.
Musk also mentioned the potential for Optimus, Tesla’s humanoid robot, to assist with boring and repetitive tasks in the factory. By using Optimus for tasks like loading hoppers and transporting materials, Tesla aims to improve efficiency and safety. The production version of Optimus is expected to launch next year, with plans for a production line designed to handle up to 10,000 units per month.
Tesla plans to initially use Optimus internally for tasks that are tedious and potentially dangerous for human workers. The company aims to improve efficiency and safety by leveraging Optimus for repetitive and boring tasks in the factory. The production version of Optimus is expected to be ready by early to mid next year, with production lines designed for 10,000 units per month. Tesla plans to begin delivering Optimus humanoid robots to companies outside of Tesla in the second half of next year. The production cost of Optimus is expected to be less than $20,000 when over 1 million units are produced annually. The price of Optimus will be determined by market demand.
The mass production of the Tesla Semi is progressing well, with the factory in Reno being prepped for equipment installation. The first builds are expected to start late this year and ramp up in 2026. The Tesla Semi is predicted to significantly contribute to Tesla’s revenue once at scale.
Tesla’s Chief Executive Officer, Elon Musk, emphasized the importance of autonomy in the trucking industry due to a shortage of truck drivers. Autonomy will be crucial in meeting the demand for transportation. The Tesla Semi, with autonomy, is expected to be a several billion-dollar opportunity and could potentially displace a $10 billion industry.
Tesla has not yet started working on Hardware 3 upgrades for vehicles, as software releases are still being made to improve performance. Hardware 3 upgrades will need to be done for those who purchased full self-driving capabilities, although it may be a challenging process. Tesla is still working on Hardware 3, but it will be behind the Hardware 4 releases.
Despite challenges, Tesla remains committed to upgrading Hardware 3 computers for vehicles with full self-driving capabilities. The upgrade process may be difficult, but it is necessary. Tesla is also focusing on reducing SKU count for the solar roof product and expanding its network of certified installers for installation and distribution. Elon Musk discusses the efficiency and benefits of Tesla’s Solar Roof, comparing it to premium Tesla products like the Model S and Model X. He emphasizes the importance of combining the Solar Roof with the Powerwall battery for self-sufficiency during power outages.
Musk and the Tesla team are focused on perfecting real-world AI and making rapid progress in vehicle autonomy. He spends time with the AI and Optimus teams to address challenges and accelerate innovation. Musk emphasizes the importance of tackling the greatest challenges to drive progress.
Analyst Daniel Roeska questions Musk on accelerating innovation at Tesla to realize anticipated benefits. Musk highlights the progress being made in real-world AI and vehicle autonomy, stressing the importance of addressing challenges and pushing for rapid advancements. He emphasizes the need for the right pieces in place to drive success. Elon Musk predicts unsupervised full self-driving Teslas in Austin and other US cities by the end of the year, with regulatory constraints likely delaying Europe. Challenges in China include video training restrictions. Musk dismisses LiDAR for EVs, emphasizing passive optical neural nets for full self-driving as the best solution. AI advancements expected within three to four years. Elon Musk discusses the importance of manufacturing in America and the need to make it a desirable career path for talented individuals. He emphasizes the need for more talent in manufacturing over law and finance to boost the country’s manufacturing capabilities and ensure supply chain stability.
Tesla plans to deploy robotaxis in Austin in June, with autonomous driving capabilities being tested with the company’s fleet. Musk expects unsupervised operations in several cities by the end of the year, allowing users to add or subtract their cars from the fleet like Airbnb listings, with a focus on safety and functionality.
Musk addresses concerns about fully unsupervised driving and the ability to check emails while using Tesla’s Full Self-Driving (FSD) system. He emphasizes the need to ensure safety and reduce the risk of accidents before allowing users to be distracted while the car is in autonomous mode, highlighting the importance of maintaining focus and caution. Elon Musk, CEO of Tesla, discussed the advancements in autonomous driving technology, stating that it is becoming significantly safer, around 8.5 times better. He emphasized the inevitability of sustainable transport and the increasing role of electric vehicles in the future of transportation. Musk also addressed the need to increase battery production to meet demand for electric vehicles.
During an earnings call, Musk highlighted the importance of sustainable transport and autonomous driving technology. He mentioned that Tesla is focused on increasing battery production to meet demand, rather than facing constraints on demand. The company is working on retooling factories to increase output and take advantage of technological advances in full self-driving capabilities.
Analysts questioned Musk about Tesla’s willingness to aggressively sell cars amid advancements in full self-driving technology. Musk emphasized the importance of increasing battery production to meet demand and address constraints on output. He mentioned the challenges of retooling factories for new models but expressed confidence in Tesla’s ability to scale production.
The earnings call included discussions on Tesla’s future growth aspects, particularly in relation to full self-driving technology. Musk highlighted the company’s focus on increasing battery production to meet demand for electric vehicles. Analysts inquired about Tesla’s strategy for balancing tech advances with vehicle sales, to which Musk emphasized the need to scale battery production to increase output. 1. The stock market saw a significant increase today, with the S&P 500 reaching a record high of 4,500 points. This surge was driven by strong corporate earnings reports and positive economic data, leading to optimism among investors.
2. In other news, the unemployment rate fell to 4.2% in the latest report, marking a decrease from the previous month. This drop was attributed to job growth in various sectors, including hospitality, retail, and healthcare, showing signs of a strengthening labor market.
3. The Federal Reserve announced plans to begin scaling back its bond-buying program in response to the improving economy. This decision comes as inflation rates remain steady and economic indicators point towards continued growth, signaling a shift in the central bank’s monetary policy.
4. Tech giant Apple unveiled its latest iPhone model, the iPhone 13, at a highly anticipated event. The new device boasts improved camera capabilities, longer battery life, and a faster processor, further solidifying Apple’s position as a leader in the smartphone market. Initial reviews have been overwhelmingly positive.
Read more at Nasdaq: Tesla (TSLA) Q4 2024 Earnings Call Transcript