Tesla reported its fourth quarter 2024 financial results, with revenues of $25.71 billion, a 2% increase but below expectations of $27.22 billion. Net profit fell 71% year-on-year to $2.32 billion, missing the forecast. Despite this, Tesla’s stock rose 4.22% after hours. The company plans to launch affordable models and a robotaxi service in 2025, while continuing to lead the electric vehicle market despite facing various operational challenges.
Tesla’s Fourth Quarter Results: A Closer Look
On Wednesday, the Tesla group, a leading American electric vehicle manufacturer, revealed its financial performance for the fourth quarter of 2024, which did not meet market forecasts. The company attributed this shortfall to a year-on-year decline in the average selling price of its vehicles.
In its latest report, the company announced a revenue of $25.71 billion, marking a modest increase of 2% compared to the previous year. However, this figure fell short of the analysts’ consensus from FactSet, which had projected revenues of $27.22 billion. The net profit also took a significant hit, plummeting by 71% year-on-year to $2.32 billion, while expectations were set at $2.67 billion.
Stock Market Response and Future Prospects
Despite the disappointing results, Tesla’s stock experienced a notable uptick of 4.22% in after-hours trading following the announcement. The company indicated that the average selling price of its sedan models—S, 3, X, and Y—has decreased due to price reductions and appealing financing options.
“Affordable prices are a priority for our customers, and we are continuously evaluating the cost of materials for each vehicle,” the company noted, adding that its cost of goods sold (GOGS) reached a historic low in the fourth quarter, dropping below $35,000.
Looking ahead, Tesla anticipates a rebound in its automotive business growth in 2025, driven by advancements in vehicle autonomy and new product launches. The company highlighted that 2025 is poised to be a pivotal year in its history, particularly with the rapid enhancements in Full Self-Driving (FSD) technology.
Tesla confirmed plans to introduce affordable models with production expected to commence in the first half of the year, alongside the anticipated launch of its robotaxi service later this year in select regions of the United States, with large-scale production slated for 2026.
Despite facing challenges such as temporary site closures in Germany due to an arson incident and strikes, as well as modernization efforts in Texas and China, Tesla continues to hold its position as the world’s leading manufacturer of all-electric vehicles, narrowly surpassing its Chinese competitor BYD.