Tesla Pledges Return to Growth in 2025 After Revenue Miss

Tesla (TSLA) announced its return to growth in 2025 following disappointing fourth-quarter results. Revenue rose marginally by 1% in 2024, while profits declined significantly compared to the previous year.

Key Highlights

* Paid, unsupervised FSD coming to Austin, Texas, in June.
* Tesla's auto business projected to resume growth in 2025.
* Capital spending to exceed $11 billion in the next three fiscal years.
* Model Y production to undergo brief shutdown for upgrades.

Financial Performance

* Q4 revenue of $25.7 billion, below analyst expectations.
* Full-year revenue of $97.7 billion, up 1%.
* Adjusted EPS of $0.73, missing Wall Street estimates.
* Operating income declined 23% year-over-year.
* Adjusted net income rose 3%.

Growth Prospects

* Tesla anticipates unsupervised FSD availability throughout the US by 2025 and globally by 2026.
* New vehicle production expected to reduce cost reduction efforts.
* Vehicle volume growth projected due to autonomy advancements and product launches.

Other News

* Tesla's energy storage business continues to perform strongly with expected growth of 50%.
* Musk emphasizes the importance of revitalizing US manufacturing.

Analyst Commentary

Analysts express caution despite Tesla's growth pledge, citing missed expectations and lack of specific details. Morgan Stanley's Adam Jonas notes the absence of Musk's previous growth projections.