Tesla Expects Growth Resurgence in 2025, Despite Earnings Disappointment
Tesla (TSLA) announced its return to growth target in 2025, following underwhelming fourth-quarter results.
Key Financial Highlights:
* Q4 2024 Revenue: $25.7 billion (2% increase YoY)
* Full-Year 2024 Revenue: $97.7 billion (1% increase YoY)
* Adjusted EPS: $0.73 (below analyst expectations)
* Operating Income: $1.58 billion (23% decrease YoY)
* Adjusted Net Income: $2.6 billion (3% increase YoY)
Growth Projections and FSD Expansion:
Tesla anticipates its auto business to resume growth in 2025, after facing setbacks in the previous year. Unsupervised FSD (Full Self-Driving) is expected to launch in Austin, Texas in June and expand nationwide by the end of 2025.
Operational Challenges and Production:
Operating income was impacted by costs related to AI and R&D, as well as lower vehicle selling prices. Total auto production declined by 7% in Q4 2024, while deliveries increased by 2%. Tesla also plans for a temporary shutdown of Model Y production for the upcoming model changeover.
Capital Spending and New Vehicle Plans:
Tesla anticipates capital expenditures to exceed $11 billion in the upcoming fiscal years. New vehicle programs will result in reduced cost reductions compared to previous projections. The "more affordable models" are still on track for production in 2025, and the Cybercab robotaxi remains scheduled for 2026.
Energy Storage Growth and Political Involvement:
Tesla's energy storage business continues to perform well, with projected growth of 50% year over year. CEO Elon Musk emphasized the importance of manufacturing and the role of the Trump administration in promoting US industrial policy.