Teslaโs earnings day is here, bringing fresh insights into the companyโs financial performance and future plans. As one of the worldโs largest electric vehicle (EV) manufacturers, Tesla’s quarterly earnings report is closely watched, and CEO Elon Muskโs remarks often make headlines.
The companyโs fourth-quarter and full-year earnings results will be released today after market close, followed by a webcast at 5:30 p.m. ET. Analysts and investors will be keen to hear updates on Teslaโs profits, production numbers, and long-term vision.
Financial results and 2025 outlook
One key figure to watch is Teslaโs revenue and net income for the quarter. Earlier this month, the company announced it had delivered 1.77 million vehicles in 2024, marking a 2.2% decline from 1.81 million in 2023โits first year-over-year drop. This decline could lead to lower revenue unless other divisions, such as energy storage or software services, offset the losses.
Despite the annual drop, Tesla saw a slight delivery improvement in the final quarter of 2024. The company delivered 495,570 vehicles in Q4, up 7% from Q3 and 2.28% higher than in 2023. These numbers may signal a positive shift heading into 2025, but investors will be looking for Teslaโs guidance on sales and profitability expectations for the coming year.
Beyond the financials, Muskโs comments on government policies could also impact Teslaโs outlook. Investors are watching for his reaction to former President Donald Trumpโs recent executive order pausing the disbursement of funds from the Inflation Reduction Act and Bipartisan Infrastructure Law, which includes funding for EV charging stations.
Robotaxis and self-driving ambitions
One of Muskโs most ambitious promisesโfully autonomous Teslasโremains a hot topic. The concept of a Tesla-operated robotaxi service has kept the companyโs stock price high, even as fully self-driving technology remains in development.
Tesla recently shared a video on Muskโs social media platform, X, showing finished vehicles driving themselves to a delivery prep lot. Musk claimed that Tesla would allow customers in Texas and California to hail self-driving Teslas later this year. Bloomberg also reported that Tesla is discussing the launch of a robotaxi service with Austin and other Texas officials.
However, regulatory challenges remain, especially in California, where stricter policies make it more difficult to deploy autonomous taxis. Texas, where Musk has strong business ties, may be more willing to accommodate Teslaโs plans.
Teslaโs financial standing
Looking back at Teslaโs financials, the company reported US$25.2 billion in revenue and a US$2.2 billion profit in Q3 2024, showing little change from the previous year. In Q4 2023, Tesla posted US$25.17 billion in revenue and a net income of US$7.9 billion, including a one-time non-cash tax benefit of US$5.9 billion.
Tesla has also benefited from selling regulatory credits to other automakers. In Q3 2024, the company earned US$739 million from credit sales, following a record US$890 million in the previous quarter. However, Trumpโs push to revoke Californiaโs emissions waiver could threaten this revenue stream, potentially impacting Teslaโs financial stability.
As the earnings call approaches, all eyes are on Musk and whether Teslaโs 2025 strategy will reassure investors. Will the company maintain profitability and finally make its long-promised autonomous fleet a reality?
