Elon Musk promises new, cheaper electric vehicles after warning of 'pivotal year' for Tesla
WATCH: Elon Musk on the Tesla Cybertruck
GB NEWS
Tesla reported disappointing fourth-quarter earnings for 2024, with revenue of $25.7billion (£20.6billion) falling short of Wall Street analysts' predictions of $27.2billion (£21.8billion).
The electric vehicle maker's shares dropped approximately four per cent in after-hours trading following the announcement on Wednesday.
The company posted earnings of $0.73 (59p) per share, below analysts' estimates of $0.76 (61p), marking a decline in profit compared to the previous year.
Despite the underwhelming financial results, Tesla's stock has shown remarkable performance over the past year, climbing more than 100 per cent, with a 75 per cent increase in the last six months alone.
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Elon Musk has promised to roll out new electric vehicles in the coming months
REUTERS
The earnings report caps what has been described as a bruising year for Tesla's sales, though the company's stock price has remained resilient.
Tesla has recorded its first annual decline in deliveries, reporting 495,570 vehicles delivered in the fourth quarter of 2024 and 1.8 million for the full year.
The company repeatedly failed to meet its quarterly delivery targets throughout 2024, facing challenges in multiple markets.
European demand has been particularly affected, with October registrations of Tesla vehicles falling by 24 per cent following reduced electric car subsidies in the region.
The company's newest offering, the Cybertruck, launched in November 2023 at approximately $80,000 (£64,238), has failed to generate sufficient sales to offset declining demand for Tesla's existing models.
Some Wall Street analysts remain optimistic, suggesting demand for Tesla vehicles could increase once the US Federal Reserve implements interest rate cuts.
Tesla has made significant strides in reducing manufacturing costs, with the average cost of materials and labour reaching its lowest level ever in the fourth quarter of 2024.
Reuters calculations showed the cost of producing Tesla vehicles had decreased to approximately $33,000 (£26,498), down from nearly $39,000 (£31,316) two years earlier.
Thomas Martin, senior portfolio manager at Tesla shareholder Globalt Investments, expressed encouragement at the cost reductions, stating: "They've been able to execute on the cost side and get that down. Their ability to do that in the fourth quarter definitely cushioned the blow."
Elon Musk has outlined ambitious plans for Tesla in 2025, declaring it will be "a pivotal year" for the company.
The company announced it would introduce new, cheaper electric vehicle models in the first half of 2025, though specific details about pricing and specifications were not disclosed.
A significant development is planned for June 2025, with Tesla set to begin testing a paid autonomous car service.
LATEST DEVELOPMENTS:
The Cybercab is expected to enter production in 2026 TESLA"Teslas will be in the wild, with no one in them, in June, in Austin," Musk told analysts and investors during the earnings call.
The company plans to expand its unsupervised full self-driving (FSD) tests to other US states, including California, throughout the year.
Tesla's CFO Vaibhav Taneja noted that potential new tariffs could affect the company's business and profitability, as it continues to rely on overseas suppliers.
The Elon Musk-led brand has announced plans to begin production of its new Cybercab, a self-driving taxi, in 2026 at its Texas Gigafactory.
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