Tesla Q4 Net Income Plummets 71% Amidst Revenue Miss
Tesla's Q4 net income plunged 71% year-over-year, falling short of analysts' expectations. Excluding one-time items, earnings per share still missed estimates.
Despite a slight revenue increase, Tesla's $25.7 billion sales trailed forecasts of $27.1 billion. This followed incentives to boost EV demand, including low-interest loans and price cuts.
Although vehicle sales reached a record 495,570 in Q4, Tesla has lost market share to legacy automakers and EV rivals like BYD.
The company noted plans to reduce vehicle costs, with one model now priced under $35,000. Tesla also anticipates releasing unsupervised self-driving technology later this year.
Tesla's gross profit margin declined to 16.3% in Q4. Despite a post-market stock drop of over 2%, Tesla shares remain elevated since Donald Trump's presidency, buoyed by Musk's advisory role.