Tesla (TSLA) shares jumped in trade before the market after a future growth road card

Tldr:

• Tesla reported revenue from Q4 of $ 25.7 billion missing the analyst’s expectations, with year’s 2024 year -round revenue.
• The company’s automatic deliveries decreased for the first time in 2024, dropping 1% to 1.78 million vehicles
• Tesla plans to launch a more cheap EV model in the first half of 2025 and start production of Robotaxi in 2026.
• The company will start testing the paid autonomous vehicle service in Austin, Texas, starting in June 2025.
• The average cost of producing vehicles reached all the time in Q4 2024, although profit margins fell below the analyst’s expectations

Tesla reported disappointing results from the fourth quarter for 2024, with revenue not reaching the expectations of analysts against the background of the first annual decline in the delivery of the company. However, The shares of the electric vehicle manufacturer have increased on plans for future growth and cost reduction initiatives.

The company reported $ 25.7 billion in revenue from $ 25.7 billion, with missing analysts estimating $ 27.2 billion. The figure represents only a 2% increase compared to the same period last year. The year’s 2024 revenue increased by only 1%to reach $ 97.7 billion.

The corrected profit of Tesla’s share came at $ 0.73, below the expected $ 0.75 on Wall Street. Operational income dropped by 23% compared to the year to $ 1.58 billion, while the corrected net income shows a modest increase by 3% to $ 2.6 billion.

The company’s automotive business faced specific challenges in 2024. The total revenue from cars decreased by 8% in the fourth quarter compared to the previous year, with a 6% drop for the whole year. The production units fell 7% in the fourth quarter, although deliveries did a slight 2% increase.

Deliveries of vehicles for the entire 2024 have reached 1.78 million units, noting a decrease of 1% since 2023. This is the first annual decline in Tesla supply, reaching analyzers’ estimates of approximately 510 400 units in the fourth quarter alone.

Despite these failures, Tesla has 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, dealing with market affordability concerns.

CFO Tesla Vaibhav Taneja has announced that the production of Model Y will temporarily stop in the factories for a new model change, which will affect the margins in the short term. However, the company has achieved its lowest average costs for the production of vehicles in the fourth quarter, aided by reducing the cost of raw materials.

Autonomous company’s driving ambitions continue to progress, with plans to launch a paid, unsupported full-time driving service (FSD) in Austin, Texas, beginning in June 2025. Tesla aims to expand FSD in Europe and China more late during the year.

Looking forward, Tesla confirmed its Robotaxi vehicle, called Cybercab, remains on a schedule for the production of volume in 2026. Testing the fleet of existing models is expected to start later in 2025.

The energy storage department remains strong, with deployment is expected to grow by 50% compared to a year. This diversification helps to compensate for challenges in the car segment.

The price of Tesla’s shares reflects the mixed market sentiment, closing 2024 with profits, partly attributed to the brought of the Executive Director Elon Musk with the Trump administration. However, the shares decreased by approximately 3% from the beginning of 2025 to the end of Wednesday.

The company’s production strategy includes the use of both current and next generation of platforms of the same production lines, which Tesla says will allow for reasonable volume growth while maintaining capital efficiency during uncertain market conditions.

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