Folks, if you are a Tesla shareholder, you need to watch this video. Tesla just dropped its Q4 and full year 2024 earnings, and it's a bit of a roller coaster. We've got record deliveries, a surging energy business, and breakthroughs in AI and autonomy, but also margin, compression, weaker automotive revenue, and some short-term headwinds. For a stock that has run up huge on excitement on Trump's win and Musk's close proximity to the president, this is certainly a mixed bag.
But there's a ton of hints and clues about the long-term trajectory of Tesla stock that were revealed today, and we are going to dive into all of them. If you really read between the lines here, Tesla is actually looking more promising than ever, assuming you have a long enough time horizon. And we're going to discuss all of this here today. We're going to dive into the good, the bad, and the insane potential ahead. And then we've got a sponsored segment on ticker symbol TZUP.
TZUP is a unique idea showing proof of concept in a very hot industry. will explain why you may just want to put it on your radar as soon as possible. And I'll put all the timestamps down below. And as always, if you're the one taking the ultimate risk, you've got to be the one doing the ultimate frisk.
Okay, so let's go ahead and start with the goods. So Tesla crushed it in several key areas, even though the hardline numbers look mixed. Firstly, they had record deliveries and very, very strong demand in many different segments. Tesla delivered 495,570 vehicles in Q4, a 2% year-over-year increase, and their full year 2024 total deliveries. are 1.79 million vehicles.
The Model Y is now officially the best-selling vehicle in the world, outselling every gas-powered and electric car globally. Right now, Tesla is basically in between two chapters of their business, and competition is heating up, yet Tesla is still dominating the EV market and growing deliveries. Tesla's energy storage business is booming.
Energy revenue surged 113% year-over-year to $3.06 billion in Q4. The fastest growing segment in Tesla's business. Tesla deployed 11 gigawatts of energy storage in Q4, a massive 244% increase year over year. Also, the Shanghai megafactory is now complete, meaning huge future expansion in the space. Why does this matter?
Well, the energy business could become as big as the car business over the next decade. So the fact that this energy storage business that a lot of people overlook is growing so massively, well, that's a really, really big deal long term for the stock, right? Now, Tesla is also stacking cash.
They have an insane balance sheet. Tesla added $7.5 billion in cash in 2024, bringing its total cash reserves to $36.6 billion. They had free cash flow of $2 billion in Q4, showing Tesla is still highly profitable despite price cuts.
Why does this matter? Well, Tesla has oodles and oodles of capital now to fund AI, robo-taxis, new gigafactories, next-gen EVs, and also wait out any kind of recession. You compare this to basically any legacy automaker, which is drowning in debt, and you could see Tesla really comes out on top. Obviously, Tesla is more than just a automaker, but you get the point.
Tesla reported their full self-driving progress is accelerated. Tesla expanded its AI training compute by 400%. They reported that 3 billion miles were driven on full self-driving supervised as of January 2025. Version 13 of FSD supervised is showing major improvements and could be a game changer for autonomy adoption. Why does this matter?
Well, once Tesla unlocks unsupervised FSD and launches robo-taxis, this could create a multi-trillion dollar fleet business. In terms of Cybertruck, Tesla is reporting very, very strong demand there. And Tesla confirmed a more affordable model lineup for 2025, meaning a Model 2 or a similar compact EV is coming.
And that could really, really, really bring in a lot of revenue for Tesla. You're going to get a whole new market there. Tesla's biggest weakness is affordability.
And these new models could drive mass adoption, right? Cost per vehicle fell below $35,000, the lowest ever recorded for Tesla. And this is huge. Because even though Tesla cut prices, it's offsetting the demand with cost reductions.
Why does this matter? Well, if Tesla can keep reducing costs while scaling full self-driving and AI, profits could explode upward in future quarters. Now, even with all of that good news, Tesla did struggle in some key areas, and investors need to be aware of that. For starters, automotive revenue declined about 8% year over year.
This was due to price cuts on the Model 3 and the Y, which lowered average selling price a lot. Why does this matter? Well, Tesla is sacrificing short-term revenue for market share here, which can be a risky move and certainly doesn't look good on an earnings report.
But long-term, it should pay off for them very, very nicely. Tesla also reported that their margins took a big hit. They, in fact, had a 23% hit to their operating income. Gap gross margin fell 16.3%, down from 17.6%. Last year, operating margin dropped to 6.2%, meaning Tesla is making less profit.
per car, which again makes sense since the average selling price has gone down. Now, none of this will matter long term if Tesla introduces more models and they really, really start selling like candy. They can make up for all of this in volume and longer term. They can make up for this with FSD, AI, and software revenue. that I think is going to scale way faster than these margins are going to go down.
It's also true that EV competition and high interest rates have been hurting Tesla. China's EV makers, BYD, NIO, Xpeng are gaining ground fast in that market, helped by the CCP, of course. 4GM and Rivian are also all dropping EV prices to compete in the national market. And higher interest rates are simply making car financing more expensive so less people can go out and buy a Tesla, right? And so all of these pressures are forcing Tesla to keep dropping costs, to stay ahead and continue to try to grow their overall business, right?
Okay, so with this overall report, we had lots of good, some bad, and some clear weaknesses, but there are lots and lots of things to look forward to and lots of catalysts ahead for Tesla shareholders. What Tesla reported today was that they were laying down massive, massive infrastructure and technology investments that could define their next decade plus of growth. These aren't just... incremental improvements.
These are game-changing moves that could reshape Tesla's business model, increase profitability, and open entirely new revenue streams in the long term. Okay, so let's break down the biggest catalysts and why they matter for Tesla's stock price and long-term potential. So number one, the new Model Y rebuild.
This is going to strengthen Tesla's best-selling car. Model Y is not just the best-selling car, though. It's the best-selling vehicle in the world, period.
Tesla isn't sitting back, though, on this one like they sat back on the Model S. No. They're actually going and they're making big upgrades that will keep it on top. And I think they're doing a pretty good job here. I mean, they have improved suspension and ride comfort. The new Model Y includes a second generation adaptive suspension that improves ride quality for both comfort and performance.
It has an upgraded interior and display, new materials, a 15-inch front screen, a new 8-inch rear touchscreen, and better climate control for an upgraded luxury feel. In terms of camera and safety upgrades, it now features eight cameras for enhanced vision, improved autopilot functionality, and better safety. It also has increased efficiency and range. Tesla is tweaking battery efficiency to offer 320 plus miles of range while maintaining cost competitiveness.
You have to keep in mind, folks, that the Model Y is already Tesla's volume leader, but these upgrades will boost demand and increase margins through improved efficiency. Now, number two, you want to pay very, very close attention to this upcoming Tesla semi-factory. They are saying this is going to disrupt the 800...
billion trucking industry. Now, Tesla's Semi program is moving from concept to production, and the Nevada-based Tesla Semi factory is preparing for mass manufacturing. The first Tesla Semi trucks are scheduled for build-out in late 2025 with a production ramp in early 2026. What makes Tesla Semi trucks a game-changer?
Well, they're saying this is going to be a huge cost savings for fleet operators. The Tesla Semi reduces fuel and maintenance costs by 50% plus compared to diesel trucks. This is a massive incentive for companies like Pepsi, Walmart, and UPS, and the many, many other companies that need trucks that are efficient. There's also government incentives and regulations.
States like California are banning diesel truck sales after 2035, and companies that adopt EV fleets early on are eligible for major subsidies. There's also 500 plus mile range and megawatt charging. Tesla's 800 volt battery system enables fast charging and high efficiency, making long haul EV trucking viable, which is a big deal and a big improvement. Bigger picture here, Tesla is moving into a brand new multi-billion dollar market, expanding beyond consumer EVs and fleet sales equal huge repeat customers.
Unlike individual car buyers, if Tesla can ramp up production successfully, Semi could be a major, major revenue driving segment by 2026. Now you also got to pay attention to the mega factory in Shanghai. You see the Shanghai mega factory is now complete and will begin ramping mass production of Tesla's mega packs, the company's grid scale energy storage product. Governments and corporations need large scale battery storage to support the growth of solar and wind power, and mega packs are already sold out for 2025. Tesla's energy division is already so supply constrained that new orders are getting pushed years ahead.
So this mega factory Shanghai, which is going to be building these Tesla mega packs, is a big deal for future revenue. Now, a lot of people aren't talking about this Cortex 50K GPU training cluster. Tesla just deployed this Cortex.
at Gigafactory Texas, and this is one of the largest AI compute clusters in the world. And what this is going to do in a nutshell is it's going to accelerate FSD development, going to brand Tesla as an AI-first company, and more AI training, of course, means better autopilot and better FSD performance and better overall fleet maintenance and management. overall making Tesla's robo-taxi dreams much, much more likely. So final takeaway here, I don't think that this earnings was bad at all.
In fact, I think it shows that Tesla is playing the long game. Each of their mega projects is laying the groundwork for Tesla's next decade of expansion. Okay, anyways, now it's time for today's sponsored segment on Thumbs Up Media Corp.
TZUP and let me tell you this one's got a very interesting setup and you might want to start your research on the stock as soon as possible. Why? Well because Thumbs Up is shaking up the multi-billion dollar digital advertising space, turning everyday people into paid brand ambassadors and the stock has some serious momentum on the chart. Thumbs Up is an early stage age disruptor that's changing the way companies advertise on social media.
Instead of brands spending millions on big name influencers or running expensive digital ads, Thumbs Up lets everyday people get paid for posting brand sponsored content. Pretty cool idea. This company is not just about likes, comments, or shares though. Users get paid real cash through Venmo or PayPal just for posting.
Now think about the potential there. Would you trust an ad from a random company or... would you be more likely to engage with a friend recommending a product?
Well, that's the whole business model that Thumbs Up is operating on. And that's why this business model is catching some attention. Thumbs Up operates at the intersection of social media, influencer marketing, and digital advertising. Their platform consists of a robust advertiser dashboard where businesses launch paid campaigns, a user-friendly app where everyday users can earn money by posting about those brands. And here's the key.
The entire process is seamless. Brands create campaigns. Users take a picture or a video, post it to Instagram, TikTok, Facebook, or X or whatever, and they get paid in real cash.
It's direct, it's instant, and it's way more authentic than traditional advertising. Imagine getting paid for posting about the coffee shop you already visited, the sneakers you just bought, or a restaurant that you love. Well, that's exactly what Thumbs Up enables, and I could see why a brand might want somebody to do this. And I could see why a user would want to do this as well. U.S. digital ad spend alone is already over $159 billion, and a massive chunk of that is shifting towards micro-influencer and user-generated content strategy.
And Thumbs Up is positioned in itself right in the middle of this trend. They're aiming to disrupt the influencer marketing space and grab a share of the tens of billions of dollars that companies spend annually to reach new audiences. Now, how big do you think this could get?
Well, Thumbs Up is taking a grassroots approach by targeting small and medium businesses, the backbone of the U.S. economy. There are over 33 million SMBs in the U.S. and nearly half already spend money on digital ads. That's a massive market potential for Thumbs Up, right?
Thumbs Up has already generated over 20,000 paid posts, reaching a potential audience of 40 million people, and we could be just... scratch in the surface. Thumbs up is following a playbook used by some of the most successful tech disruptors like Airbnb, Uber, and DoorDash. They have a user-first model where anybody can sign up and start earning money. They have the network effect where the more users they attract, the more advertisers come in, which creates a self-sustaining growth loop.
And they have hyper-personalized messages. Instead of blasting generic ads, thumbs up lets businesses reach local audiences through people they already trust. What gives thumbs up its competitive edge though? Well, instant payments. No follower minimums.
You don't need to have 10,000 followers to participate. Lower cost for advertisers. Instead of paying $1,000 plus per post for big influencers, businesses can distribute their budget across hundreds or thousands of smaller organic posts and hyper-targeted local marketing. Big ad platforms rely on algorithms, but Thumbs Up lets businesses directly connect with customers in their own communities.
Overall, TZUP represents a unique play in the digital ad revolution. They got a huge addressable market. That's predicted to be about $1.8 trillion by 2030. Strong early traction with 20,000 plus posts and a 40 million person reach.
They have a disruptive model that removes middlemen and gives users direct pay. They're in a high growth potential industry by tapping into 33 million US small businesses. So anyways, folks, if you're into unique early stage plays, well, TZUP might be worth adding to your due diligence list and putting on your radar.
Anyways, folks, that caps off today's video. Have a great rest of your day and we'll see you next time.