Tesla Misses Earnings Estimates but Projects Delivery Growth for 2025

Tesla Misses Earnings Estimates but Projects Delivery Growth for 2025

Tesla (TSLA) reported fourth-quarter revenue and adjusted profit that fell below analysts' expectations on Wednesday. Following the announcement and subsequent conference call, the stock initially declined but later rose by about 4% in after-hours trading.

Earnings and Revenue Performance
Tesla posted net income of $2.32 billion, or $0.66 per share, on revenue of $25.71 billion. Analysts surveyed by Visible Alpha had projected net income of $2.33 billion, or $0.66 per share, on revenue of $27.35 billion. Adjusted earnings per share (EPS) came in at $0.73, missing estimates by 5 cents.

The results come after Tesla reported lower-than-expected fourth-quarter deliveries and production figures earlier this month. The company recorded its first year-over-year decline in deliveries, falling to 1.79 million vehicles in 2024 from 1.81 million in 2023.

Outlook and New Product Plans
Despite the delivery dip, Tesla remains optimistic about future growth. The company stated that vehicle sales are expected to rebound in 2025. Additionally, Tesla confirmed that plans for a more affordable vehicle model are on track for production in the first half of the year. However, details regarding the pricing or design of the new model have not yet been disclosed.

Advancements in Self-Driving and Robotaxi Initiatives
Tesla highlighted significant progress in its Full Self-Driving (FSD) technology, aiming to launch the supervised version in Europe and China later this year. CEO Elon Musk announced that the unsupervised version of FSD software is set to begin use at Tesla's Austin, Texas factory in June, with a potential public rollout later in 2025.

The company also revealed plans to launch its autonomous "Cybercab" taxi in select U.S. markets by the end of the year, contingent on achieving safety benchmarks. A broader rollout is anticipated in 2026.

Policy and Market Impact
Tesla’s proximity to U.S. President Donald Trump, who recently secured reelection, has influenced analyst sentiment, with many raising their price targets as Tesla shares have climbed approximately 60% over the past year. However, CFO Vaibhav Taneja noted lingering uncertainty around proposed tariffs, which could impact Tesla’s profitability due to its reliance on parts sourced from other countries.

Stock Performance
Tesla shares ended Wednesday’s regular session down more than 2% at just over $389, more than double their price from a year ago. Despite short-term challenges, Tesla remains well-positioned for growth as it continues to advance its EV and autonomous driving technologies.