Swasticar Tesla has reported its earnings for the fourth quarter of 2024 showing that sales have dropped down the loo. The electric carmaker posted earnings of $0.73 per share and revenue of $25.71 billion, slightly below Wall Street analysts' expectations of $27.22 billion. Profit declined year-over-year, and Tesla’s shares fell by approximately 4 per cent in after-hours trading.
With numbers like that, Musk took time from his business schedule of propping up Europe’s Far Right to talk up some of the products which may or may not happen.
At a demonstration in October, Musk introduced the Tesla Cybercab, which he described as a self-driving taxi. During Wednesday’s earnings call, he confirmed that production would begin in 2026, though Tesla has a history of delayed releases. Musk also announced that Tesla’s robotaxi business would commence in June this year, though details remain unclear. Additionally, the company revealed that an advanced version of its Model Y sedan would go on sale in March. Tesla is under federal investigation in the United States for its alleged use of its full self-driving feature in multiple fatal crashes.
Overall, it is a safe bet that none of that will happen unless his chum Donald Trump steps in and helps it to happen. However, that did not stop Musk from coming up with his usual enthusiasm.
“This is not some far-off, mythical situation, 2025 is going to be a pivotal year for Tesla,” he said with all the enthusiasm of a Linux fanboy who thinks that this year will be the year of Linux on the desktop.
All this hides a serious reality, in recent years, Tesla has struggled to compete with cheaper electric vehicle alternatives from rivals such as China’s BYD. The Chinese company overtook Tesla in the last quarter of 2023 to become the world’s largest electric vehicle manufacturer. Tesla regained the top spot for the first three quarters of 2024, partially due to significant price reductions.
In its earnings report, Tesla reported 495,570 deliveries for the fourth quarter and 1.8 million for the full year. This marks the company’s first annual decline, following a year in which it repeatedly failed to meet its quarterly delivery targets. The decline in European subsidies for electric cars has adversely affected Tesla, with October 2024 registrations of Tesla vehicles falling by 24 per cent in the region. Some Wall Street analysts anticipate an increase in demand for Teslas following expected interest rate cuts by the US Federal Reserve.
Tesla’s disappointing delivery figures suggest that its vehicles failed to attract new customers in 2024. The angular Cybertruck, released in November 2023 after prolonged delays and priced at approximately $80,000, has not generated enough sales to offset declining demand for Tesla’s older models.
Musk has also suggested that he may step away from the company following a prolonged legal dispute over his $56 billion compensation package, which a judge has twice rejected. Despite this uncertainty, Tesla’s stock price has soared, increasing by more than 100 per cent over the past year and 75 per cent in the past six months alone.
