Tesla Pledges 2025 Growth After Disappointing Q4 Results
Tesla (TSLA) committed to resuming growth in 2025 after releasing underwhelming fourth-quarter results, concluding a year that saw a mere 1% revenue rise accompanied by a sharp drop in profits.
Key Financial Results:
* Q4 Revenue: $25.7 billion (below analyst expectations of $27.2 billion)
* Full-Year 2024 Revenue: $97.7 billion (1% increase)
* Adjusted EPS: $0.73 (below Wall Street estimates of $0.75)
* Operating Income: $1.58 billion (23% decrease)
* Adjusted Net Income: $2.6 billion (3% increase)
Challenges and Opportunities:
* Operating income impacted by R&D costs and lower vehicle prices
* Return to growth expected in automotive segment in 2025
* New vehicle plans may result in reduced cost savings
* Purpose-built robotaxi (Cybercab) on track for volume production in 2026
* Energy storage business remains a growth area
Elon Musk's Comments:
* Unsupervised FSD to launch in Austin, Texas, in June
* Plans to introduce FSD in Europe and China in 2025
* Emphasis on revitalizing manufacturing in the US
Stock Performance:
* TSLA shares rose 3% in pre-market trading on the release of results
* Year-to-date, Tesla shares have declined about 3%
Additional Insights:
Tesla's earnings report highlights the challenges faced by the EV industry amid rising competition, demand fluctuations, and global economic uncertainty. However, the company remains confident in its long-term growth prospects and is investing heavily in new technologies and vehicles.