[ad_1]
André Thierig, plant manager of the Tesla Gigafactory Berlin-Brandenburg, stands at the final inspection of the production of Tesla Model Y electric vehicles.
Patrick Pleul | Picture Alliance | Getty Images
Tesla shares fell about 4% in extended trading on Wednesday after the electric vehicle maker reported earnings and revenue for the fourth quarter that trailed analysts’ estimates.
Here’s how the company did vs. estimates from LSEG:
- Earnings per share: 73 cents, adjusted, vs 76 cents expected
- Revenue: $25.71 billion vs $27.26 billion expected
Tesla’s revenue increased just 2% from $25.17 billion a year earlier, while automotive revenue sank 8% to $19.8 billion from $21.56 billion in the same quarter last year. Operating income decreased 23% year-over-year to $1.6 billion.
The company cited decreased average selling prices across its Model 3 and Y, and S and X lines as a major factor.
Tesla’s earnings report follows a steep rally in the company’s stock price tied to the election of President Donald Trump. Tesla CEO Elon Musk was the biggest backer of Trump’s campaign efforts and is now leading the president’s new government efficiency advisory board.
The company’s stock price has rallied sharply since Trump’s victory in November as investors bet that Musk’s influence would lead to both favorable policies and less oversight of his companies.
Operating margin for the quarter came in at 6.2%, narrowing from 8.2% during the same period a year earlier 10.8% in the previous quarter.
In early January, Tesla reported deliveries for the fourth quarter of 495,570. For the full year, deliveries came in at about 1.8 million, marking the company’s first annual decline. Deliveries are the closest approximation of sales reported by Tesla, but are not precisely defined in the company’s shareholder communications.
To end 2024, Tesla offered a range of discounts on inventory vehicles and special discounts for buyers in North America who were referred by another Tesla customer. In China, Tesla cut prices on its popular Model Y SUVs before debuting a refreshed version, the Model Y Juniper.
In its shareholder deck on Wednesday, Tesla noted that “affordability remains top of mind for customers.” The company said it intends to “review every aspect” of its cost of goods sold per vehicle to help make its EVs affordable.
Musk has been telling investors in recent quarters to focus less on the core business as it exists today and more on a future of autonomy and robotics.
In October, Tesla drummed up excitement among fans by showing off an early prototype version of a Cybercab at its “We, Robot” event. However, Tesla still doesn’t produce robotaxis. Instead, the company sells a premium version of its partially automated driving system called “FSD,” short for Full Self-Driving Supervised.
Meanwhile, Google’s Waymo has a growing commercial robotaxi offering in some U.S. markets, and China’s WeRide and Pony.ai are testing and commercially operating driverless ride-hailing services.
Story is developing. Check back for updates
[ad_2]
Source link