Tesla, Inc. stock research
FY2024 Q4
Tesla (TSLA) Gross Margin — Quarter Ended Dec 31, 2024
Gross margin weakened from the prior quarter and the same quarter a year earlier, as cost of revenue increased more than revenue. The relationship among revenue, gross profit, and cost of revenue shows that higher revenue was offset by a proportionally larger rise in costs, reducing gross profit.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Gross margin weakened from the prior quarter and the same quarter a year earlier, as cost of revenue increased more than revenue. The relationship among revenue, gross profit, and cost of revenue shows that higher revenue was offset by a proportionally larger rise in costs, reducing gross profit.
- The most observable driver is the change in cost of revenue relative to revenue. In both comparisons, cost of revenue grew faster than revenue, compressing gross margin.
- Compared with the immediately preceding quarter, gross margin was lower, with revenue higher but gross profit lower and cost of revenue higher. Compared with the same quarter one year earlier, gross margin was also lower, as revenue was higher but gross profit was lower and cost of revenue was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
16.3%
Gross profit
$4.2B
Revenue
$25.7B
Cost of revenue
$21.5B
Quarter-over-quarter change
-3.6 pts
Year-over-year change
-1.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2024 | $21.3B | $3.7B | $17.6B | 17.4% |
| Jun 30, 2024 | $25.5B | $4.6B | $20.9B | 18.0% |
| Sep 30, 2024 | $25.2B | $5.0B | $20.2B | 19.8% |
| Dec 31, 2024 | $25.7B | $4.2B | $21.5B | 16.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-3.6 pts
Year-over-year change
Dec 31, 2023
-1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver is the change in cost of revenue relative to revenue. In both comparisons, cost of revenue grew faster than revenue, compressing gross margin.
Compared with the immediately preceding quarter, gross margin was lower, with revenue higher but gross profit lower and cost of revenue higher. Compared with the same quarter one year earlier, gross margin was also lower, as revenue was higher but gross profit was lower and cost of revenue was higher.
Monitor the trend of cost of revenue relative to revenue, as its growth rate has outpaced revenue and weakened gross margin.