TLDR:
- Tesla reported Q4 revenue of $25.7B, missing analyst expectations, with full-year 2024 revenue up only 1% to $97.7B
- Company’s auto deliveries declined for the first time year-over-year in 2024, dropping 1% to 1.78M vehicles
- Tesla plans to launch a cheaper EV model in first half of 2025 and begin robotaxi production in 2026
- Company will begin testing paid autonomous vehicle service in Austin, Texas starting June 2025
- Average vehicle production costs reached all-time low in Q4 2024, though profit margins fell below analyst expectations
Tesla reported disappointing fourth-quarter results for 2024, with revenue falling short of analyst expectations amid the company’s first annual delivery decline. However, the electric vehicle maker’s stock rose on plans for future growth and cost reduction initiatives.
The company posted fourth-quarter revenue of $25.7 billion, missing analyst forecasts of $27.2 billion. The figure represented just a 2% increase from the same period last year. Full-year revenue for 2024 grew only 1% to reach $97.7 billion.
Tesla’s adjusted earnings per share came in at $0.73, below Wall Street’s expected $0.75. Operating income dropped 23% year-over-year to $1.58 billion, while adjusted net income showed a modest 3% increase to $2.6 billion.
The company’s automotive business faced particular challenges in 2024. Total auto revenues declined 8% in the fourth quarter compared to the previous year, with a 6% drop for the full year. Production numbers fell 7% in the fourth quarter, though deliveries managed a slight 2% increase.
Vehicle deliveries for the full year 2024 reached 1.78 million units, marking a 1% decrease from 2023. This represented Tesla’s first-ever annual decline in deliveries, falling short of analyst estimates of approximately 510,400 units for the fourth quarter alone.
Despite these setbacks, Tesla outlined several initiatives aimed at returning to growth in 2025. The company plans to launch a more affordable electric vehicle model in the first half of the year, addressing concerns about market accessibility.
Tesla CFO Vaibhav Taneja announced that Model Y production will temporarily halt across factories for a new model changeover, which will impact margins in the short term. However, the company achieved its lowest-ever average vehicle production costs in the fourth quarter, helped by decreasing raw material expenses.
The company’s autonomous driving ambitions continue to advance, with plans to launch paid, unsupervised Full Self-Driving (FSD) service in Austin, Texas, beginning in June 2025. Tesla aims to expand FSD to Europe and China later in the year.
Looking further ahead, Tesla confirmed its robotaxi vehicle, dubbed Cybercab, remains on schedule for volume production in 2026. Fleet testing of existing models is expected to begin later in 2025.
The energy storage division remains strong, with deployments projected to grow 50% year over year. This diversification helps offset challenges in the automotive segment.
Tesla’s stock price reflected mixed market sentiment, closing 2024 with gains partly attributed to CEO Elon Musk’s alignment with the Trump administration. However, shares have declined approximately 3% since the start of 2025 through Wednesday’s close.
The company’s manufacturing strategy involves using both current and next-generation platforms on the same production lines, which Tesla says will enable prudent volume growth while maintaining capital efficiency during uncertain market conditions.
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