Elon Musk’s Tesla reported fourth-quarter earnings and revenue that missed analysts’ estimates, with automotive revenue falling 8 percent year-over-year.
CNBC reports that Tesla’s fourth-quarter results failed to meet expectations, with the EV giant reporting disappointing figures on both the top and bottom lines. The company’s revenue increased by a meager 2 percent from the previous year, rising from $25.17 billion to $25.71 billion, falling short of the $27.26 billion expected by analysts polled by LSEG. Earnings per share also missed the mark, coming in at 73 cents adjusted compared to the anticipated 76 cents.
The lackluster performance was primarily attributed to the automotive segment, which saw revenue drop 8 percent to $19.8 billion from $21.56 billion in the same quarter last year. Of this, $692 million came from regulatory credits. Tesla cited reduced average selling prices across its Model 3, Model Y, Model S, and Model X lines as a major contributing factor to the decline.
Operating income also took a hit, declining 23 percent year-over-year to $1.6 billion, while net income plummeted 71 percent from the previous year to $2.32 billion, or 66 cents a share. It is worth noting that last year’s net income figure was significantly bolstered by a one-time noncash tax benefit of $5.9 billion.
To stimulate demand, 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, the company cut prices on its popular Model Y SUVs before debuting a refreshed version, the Model Y Juniper.
Looking ahead, Tesla acknowledged that affordability remains a top concern for customers and stated its intention to review every aspect of its cost of goods sold per vehicle to help make its EVs more affordable. While the company did not provide specific guidance for 2025, it expects the vehicle business to return to growth this year.
Tesla also reiterated plans to “unlock an unsupervised FSD option” and begin launching its driverless ride-hailing business in parts of the U.S. later this year. However, the company faces stiff competition from the likes of Google’s Waymo, WeRide, and Pony.ai, which are already testing and commercially operating driverless ride-hailing services in various markets.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
