Tesla Focuses on Growth, Unsupervised FSD Expansion
Key Highlights:
* Tesla pledges a return to growth in 2025 after Q4 2024 results disappoint.
* Paid, unsupervised Full Self-Driving (FSD) to launch in Austin, Texas, in June.
* Revenue growth of only 1% in 2024, while profits decline sharply.
* Adjusted EPS falls short of analysts' estimates.
* Tesla expects capital spending to exceed $11 billion annually for the next three years.
* Energy storage business sees strong growth, with deployments expected to increase by 50% year over year.
Q4 2024 Financial Results:
* Revenue: $25.7 billion (missed expectations of $27.2 billion)
* Adjusted EPS: $0.73 (below $0.75 forecast)
* Operating income: $1.58 billion (down 23%)
* Adjusted net income: $2.6 billion (up 3%)
Auto Business Outlook:
* Auto revenue decline of 8% in Q4 2024 and 6% in 2024.
* Tesla targets a return to growth in 2025.
* New vehicle plans and production anticipated to reduce cost savings.
* Model Y production shutdown for a brief period due to Model Y changeover.
FSD and New Vehicle Plans:
* Unsupervised FSD expected to be available in the US by end of 2025 and globally by end of 2026.
* New vehicles and "more affordable models" planned for production in early 2025.
* Cybercab robotaxi volume production scheduled for 2026.
Additional Highlights:
* Musk emphasizes the need to revitalize American manufacturing.
* Tesla stock climbed nearly 4% in early trading after the earnings call.
* Analysts highlight the importance of unsupervised FSD for Tesla's future growth.