Tesla Pledges Growth Return in 2025 After Q4 Disappointment
Tesla's (TSLA) stock surged 4% in after-hours trading on Wednesday after the company projected a return to growth in 2025. This follows Q4 results that fell short of expectations and capped off a year with a meager 1% revenue increase and a sharp decline in profits.
Q4 Results and Full-Year 2024 Performance
Tesla reported Q4 revenue of $25.7 billion, missing analysts' estimates of $27.2 billion and increasing just 2% year-over-year. For the full year 2024, revenue rose 1% to $97.7 billion.
Adjusted earnings per share reached $0.73, below the $0.75 consensus forecast. Operating income totaled $1.58 billion, a 23% decrease from the previous year, while adjusted net income increased 3% to $2.6 billion.
Tesla attributed its lower operating income to expenses associated with artificial intelligence and R&D projects, as well as lower average selling prices.
Growth Outlook and New Vehicle Plans
In its shareholder presentation, Tesla expressed confidence in its auto business rebounding in 2025. The company expects auto revenues to decline 8% in Q4 2024 and 6% for the full year 2024.
Tesla also announced plans for new vehicles and increased production, which it expects to be more cost-efficient than previously anticipated. However, the company acknowledged that a planned Model Y shutdown will impact margins.
Despite the production challenges, Tesla reiterated its goal of starting production of new vehicles, including "more affordable models," in early 2025. The Cybercab robotaxi is still scheduled for mass production in 2026.
Other Key Highlights
* Tesla's energy storage business continues to perform well, with expected 50% annual growth.
* CEO Elon Musk highlighted the upcoming release of unsupervised FSD in Austin, Texas, in June and its planned expansion to Europe and China in 2025.
* Musk emphasized the importance of promoting manufacturing in America and directing talent towards the sector.