Tesla reported lower-than-expected fourth-quarter results and a lower-than-expected full-year production outlook, weighing on stock prices, continuing the EV maker's slump that began at the beginning of the year.
For the fourth quarter, Tesla reported revenue of $25.17 billion versus $25.87 billion (estimated), an increase of about 6% year-over-year. From a profitability perspective, Tesla reported adjusted EPS of $0.71 vs. $0.73 (expected) and adjusted net income of $2.486 billion vs. the Street estimate of $2.61 billion.
Regarding full-year production, Tesla said, “Vehicle volume growth may be significantly lower than the growth rate achieved in 2023 as our teams work to launch next-generation vehicles at Gigafactory Texas. “There is,” he suggests. This fell short of the 2.19 million people expected to be on the streets in 2024, which would have been an increase of 21% from 2023.
The decline in Tesla's profitability can be attributed to lower profit margins since Tesla began its cost-cutting efforts in late 2022. Tesla reported fourth-quarter gross margin of 17.6% versus an estimated 18.1%. This was a significant year-over-year decline and a sequential decline from the same period last year. Achieved 17.9% in the third quarter.
However, Tesla did mention advancements in its second-generation platform. “We are focused on bringing our next-generation platform to market as quickly as possible and will begin production at Gigafactory Texas. This platform will revolutionize the way vehicles are built.” Reuters Today, citing four people familiar with the matter, Tesla has told suppliers it hopes to begin production of a new mass-market electric vehicle, codenamed “Redwood,” in mid-2025. .
Headlines include rental car company Hertz cutting thousands of EVs, Tesla cutting prices in China, two-week production halt in Berlin, and CEO Elon Musk's untimely request for more inventory. It became a burden. The company's stock price is down more than 15% since the beginning of the year, while the S&P 500 index is up nearly 2%.
Tesla reported earlier this month that it delivered 484,507 vehicles in the fourth quarter, beating street expectations of 483,173, according to Bloomberg. The numbers represent Tesla's best quarter ever, surpassing the all-time high of 466,000 deliveries in the second quarter of last year by nearly 20,000 units.
Tesla announced that its annual car deliveries were 1.81 million units, an increase of 38% from the previous year, and production was 1.85 million units, an increase of 35% from the previous year. The 38% shipment growth rate was below the company's 50% compound annual growth rate (CAGR) target, which Tesla previously said was not achievable due to factory closures and improvements that occurred in the third quarter.
Delivery by Cybertruck is also noteworthy. Tesla was unable to beat this total in its fourth quarter delivery update. However, the company said it will take longer to start production of the Cybertruck than other models.
A potential wild card in an earnings call with CEO Elon Musk could be his recent comments about Tesla stock.
Musk warned last week that Tesla needs to secure greater control over the company if it is to achieve its broader AI ambitions.
“It's uncomfortable to let Tesla become the leader in AI and robotics without having up to 25% voting power. Enough to have influence, but not so much that it can't be overturned,” Musk said last week regarding X. He said on his account: The social media platform owned by this billionaire was previously known as Twitter.
“Unless that's the case, I'd like to develop products outside of Tesla.” That would likely require a new stock-based compensation plan for Musk, who is already a member of Tesla investors. is embroiled in a lawsuit over a previous pay package with
Analysts weighed in on Musk's comments, given the long-term importance of Tesla's AI efforts and the fact that Musk doesn't appear to have Tesla's best interests in mind. will ask for an explanation.
“The Street rightly (in our view) views Tesla as a disruptive technology leader, and if Musk ultimately goes down the path of forming his own company (separate from Tesla) for next-generation AI projects. “If this were the case, this would clearly be a big negative for the Street's Tesla story,” Wedbush analyst Dan Ives wrote in a note to clients last week.
Pras Subramanian is a reporter for Yahoo Finance.you can follow him twitter And even more Instagram.
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