Tesla Aims for Growth Resurgence in 2025, Despite Q4 Disappointment
Tesla (TSLA) pledged a return to growth in 2025, following weaker than expected Q4 results that capped a year of modest revenue growth and declining profits.
Unsupervised FSD Expansion and Market Optimism
CEO Elon Musk announced the upcoming launch of paid, unsupervised FSD (Full Self-Driving) in Austin, Texas, in June. Market analysts project this feature to drive bullish sentiment.
Q4 and Full-Year Financial Performance
Tesla reported Q4 revenue of $25.7 billion, below analyst expectations of $27.2 billion. Revenue for the full year 2024 rose marginally by 1% to $97.7 billion. Adjusted EPS reached $0.73, falling short of the $0.75 estimate.
Production and Delivery Trends
Total auto production decreased by 7% in Q4, while deliveries increased by 2%. Tesla delivered 495,930 vehicles globally in 2024, missing estimates, and saw a 1% drop in 2024's total deliveries compared to 2023.
Capital Spending and Vehicle Outlook
Tesla expects capital spending to surpass $11 billion annually for the next three years. The company anticipates a return to growth in its auto business in 2025, with plans for new vehicle production and the launch of FSD in Europe and China.
Energy Storage Business
Tesla's energy storage business remains a growth driver, with expected year-over-year deployments increasing by 50%.