Tesla Q4 Earnings Miss Estimates, Shares Reverse Lower

Tesla (TSLA) reported Q4 earnings below expectations after the bell on Wednesday, dampening investor hopes for a stock revival.

Revenue and Profitability

* Revenue: $25.71B (vs. $27.21B expected)
* Adjusted EPS: $0.73 (vs. $0.75 expected)
* Operating income: $1.58B (vs. $2.68B estimate)

Tesla attributed the lower-than-expected operating income to AI and R&D costs, as well as declining average selling prices for existing vehicles.

Vehicle Deliveries

* Q4 deliveries: 495,930 (below estimates of 510,400)
* 2024 deliveries: 1.78 million (below estimates of 1.8 million)

This marked Tesla's first year-over-year delivery decline, suggesting challenges from competition, demand, and global economic conditions.

Future Outlook

Tesla remains optimistic about future growth, citing plans for:

* New vehicle production in early 2025, including "more affordable models"
* Volume production of Cybercab robotaxi in 2026
* Supervised full self-driving launch in Europe and China in 2025

Energy Storage

Tesla's energy storage business remains strong, with expected year-over-year growth of 50%.

Investor Sentiment

Tesla stock initially rose in after-hours trading but later reversed lower. The company's post-election rally has faded, with shares down 6.8% year-to-date.

Industry Analysis

Analysts remain divided on Tesla's prospects. Some anticipate a boost from Trump's administration in self-driving regulations, while others highlight potential regulatory challenges and concerns over EV tax credits.

Issues with Cybertruck

* Inventory discounts suggest waning demand for the Cybertruck.
* Furloughed line workers at Giga Austin raise production concerns.