Tesla Q4 Earnings Fall Short, Shares Decline
Tesla (TSLA) shares dropped 2.5% in after-hours trading on Wednesday as the electric vehicle manufacturer reported lower-than-expected fourth-quarter revenue and adjusted profit.
Tesla reported net income of $2.32 billion, or $0.66 per share, on revenue of $25.71 billion. Analysts polled by Visible Alpha had anticipated earnings of $2.33 billion, or 66 cents per share, on revenue of $27.35 billion. Adjusted earnings per share (EPS) of $0.73 missed estimates by 5 cents.
The results follow Tesla's Q4 deliveries and production figures falling below expectations earlier this month. The EV maker recorded a year-over-year deliveries decline for the first time, decreasing to 1.79 million in 2024 from 1.81 million the previous year.
Analysts have suggested that the company may benefit from CEO Elon Musk's close ties to President Donald Trump, leading to upwardly revised price targets and a 60% share price rally since the November 5th election.
Prior to the earnings announcement, Tesla shares had closed Wednesday's regular session down over 2% to $389.10, still more than double their value from a year ago.