Wednesday, after US stock markets closed, Tesla revealed earnings for the fourth quarter of 2024, capping a terrible year for sales but a brilliant one for its stock price. Slightly behind Wall Street estimates, which had projected $27.22 billion, the Tesla earnings report revealed earnings of $0.73 per share and $25.71 billion in revenue. Profit also dropped as compared to last year.
In after-hours trade following the announcement, Tesla’s stock fell almost 4%. Though the stock price has dropped, Tesla’s earnings have shown outstanding business performance, especially concerning stock value.
What Regarding Future Products of Tesla Said Elon Musk?
On an earnings call after the story, Elon Musk unveiled the Tesla Cybercab, a self-driving taxi model he says would start production in 2026. Although the idea has attracted much attention, Musk admitted Tesla’s past of postponed launches, casting doubt on the chronology.
“The robotaxi business will start in June this year,” Musk stated during the call, while the precise type of service is yet unknown.
Musk also revealed that March will see the release of an upgraded form of the Tesla Model Y vehicle. Nonetheless, Tesla is under federal inquiry for the claimed role of its full self-driving capability in many US tragic accidents.
“This is not some far-off, mythical situation,” Musk underlined, stressing that 2025 will be a turning point for Tesla. The Tesla earnings report and forthcoming projects like the Cybertruck show a more all-encompassing approach to keep expanding in the face of competition.
Why Did Sales Drop for Tesla?
Even with the development of new models, Tesla has had fierce competition—especially from less expensive substitutes from other companies. China’s BYD, which passed Tesla in the last quarter of 2023 to rank as the top electric vehicle maker worldwide, is one obvious rival. However, because of the significant price reduction, Tesla reclaimed the top in the first three quarters of 2024.
Marking its first annual drop in deliveries, Tesla started in the fourth quarter of 2024, delivering 495,570 units and 1.8 million vehicles overall. This marks a year in which Tesla routinely fell short of quarterly expectations for delivery.
Furthermore, declining European subsidies for electric cars have had a detrimental effect on Tesla’s sales in that region. For example, European Tesla car registrations dropped 24% in October.
Notwithstanding these challenges, several Wall Street experts believe that demand for Tesla could increase once the US Federal Reserve lowers interest rates. Though its stock performance is promising, the Tesla earnings report reveals that the business still faces some difficulties.
The Cybertruck's 2024 performance was?
Launched in November 2023 following many delays, the much-awaited Cybertruck has not been able to offset a drop in demand for Tesla’s older versions. Priced at around $80,000, the trapezoidal, Hot Wheels-style design has had slower-than-expected sales and has not yet had the impact many had hoped for the business.
Would Elon Musk abandon Tesla?
Apart from his company’s performance, Musk is entangled in a legal dispute over his pay, which is set at $56 billion but has been denied twice by a judge. Musk stays in charge even if he has hinted at leaving Tesla since the firm has a vital year ahead.
Behind Tesla's stock surge is what?
Over the past year, Tesla’s stock has seen a tremendous increase—more than 100% despite difficulties in delivery and competition. It climbed 75% throughout the past six months. Partially because of Musk’s influence and proximity to political leaders like former President Donald Trump, whose policies can benefit Tesla, investors have stayed confident.
Strong stock performance for Tesla can be attributed to Musk’s ability to guarantee a benign regulatory and commercial climate for the company despite efforts by Republican legislators to eradicate rich tax credits for electric automobiles. The Tesla earnings report emphasizes this and shows investors still center the stock spike as their primary focus.
To help Tesla negotiate a worldwide market full of uncertainty, President Joe Biden has also hinted at levying taxes on many items, including automobiles from China.
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