In the Storm, Tesla Bends but Does Not Break

As expected, Tesla announced mixed results for 2024 but continues to see the glass as half full.

If there is any proof that this disappointing earnings report was anything but a surprise, it is that Tesla’s stock rose by 4% during trading following the press conference before the close on Wednesday. Without ignoring its current difficulties, the American manufacturer promised a return to growth in 2025, after a year marked by a modest 1% increase in revenue and a significant drop in profits.

For the fourth quarter, Tesla recorded a revenue of $25.7 billion, below the $27.2 billion expected by analysts, representing a limited increase of 2% year-over-year. Adjusted earnings per share were $0.73, compared to an expected $0.75. Operating income declined by 23% to $1.58 billion, while adjusted net profit slightly increased by 3% to $2.6 billion.

Tesla is Practicing the Pollyanna Principle

Tesla attributes this underperformance to substantial investments made in the fields of artificial intelligence and Research & Development (R&D), as well as to regular price cuts on its vehicles. As evidence of this, while deliveries increased by 2% in the fourth quarter, revenue decreased in a nearly proportionally inverse manner. In 2024, Tesla delivered 1.78 million vehicles, a 1% decline due to competition and unfavorable economic conditions. Many manufacturers would love to boast such a figure, even if negative, but for Tesla it marks the first annual decline in nearly 20 years of existence.

In 2025, Tesla plans to return to growth thanks to new models, including more affordable vehicles and the Cybercab robotaxi, scheduled for 2026. The company also relies on advances in autonomy and the expansion of its energy storage activities, growing at 50% per year. Finally, Elon Musk announced the imminent launch of full autonomous driving (FSD) in Austin and its deployment planned in Europe and China in 2025.

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