After the US stock market closed, Tesla released its fourth-quarter 2024 revenue on Wednesday, showing a decrease in sales for the year but a strong stock price performance.
The automotive company reported earnings of $0.73 per share and a profit of $257 billion, lower than Wall Street analysts’ predictions of $27.222 billion. Profit also declined compared to the previous year.
Tesla’s stock dropped by around 4% after the news.
During the revenue call on Wednesday, Tesla CEO Elon Musk announced the Tesla Saber Cub, an autonomous driving taxi set to be produced in 2026. The company also mentioned a delay in release and the launch of the Robotaxi business, with plans for an advanced version of the Model Y sedan to be released in March. Tesla is currently under federal investigation for the use of complete autonomous driving functions in the US.
“This is not a fantasy,” Musk stated. “2025 will be a crucial year for Tesla.”
Recently, Tesla became the world’s top electric manufacturer in the last quarter of 2023, regaining its top spot in the first three quarters of 2024. This success was attributed to a sudden price reduction.
In the revenue report, Tesla disclosed 495,570 deliveries in the fourth quarter and 1.8 million for the year, marking its first year-over-year decline after missing delivery targets in 2024.
The reduction of European subsidies for electric vehicles has impacted Tesla, leading to a 24% drop in Tesla vehicle sales. Some Wall Street analysts predict that lower interest rates set by the US Federal Reserve could boost Tesla demand.
Last year, Tesla’s disappointing delivery numbers highlighted delays in new model releases and a lack of demand for older models, like the cyber truck priced at $80,000.
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Facing legal battles over his compensation, Musk had threatened to leave the company but ultimately remained. Tesla’s stock price has soared over the past year and has gained 75% in the last six months, buoyed by Musk’s relationship with US regulators and favorable business environment.
Despite threats of tariffs on various products from China, including cars, Tesla remains optimistic about future growth.
Source: www.theguardian.com
