Tesla’s disappointing quarterly earnings report has sent shockwaves through the electric vehicle (EV) market. The company reported a 2% increase in revenue, but missed analyst estimates on both earnings and sales. Automotive revenue fell 8% to $19.8 billion, with regulatory credits contributing $692 million.
CEO Elon Musk cited reduced average selling prices across its Model 3, Model Y, Model S, and Model X lines as a major reason for the decline. Net income dropped 71% to $2.32 billion, or 66 cents a share. The company’s earnings report follows a steep rally in its stock price tied to Trump’s election.
In an effort to make its EVs more affordable, Tesla is reviewing every aspect of its cost of goods sold per vehicle. However, the company still faces significant competition from autonomous vehicle startups like Waymo and Pony.ai.
Musk announced plans to launch unsupervised Full Self-Driving (Supervised) as a paid service in Austin by June. The company expects the vehicle business to return to growth in 2025. Despite this, Tesla’s brand value shed $15 billion in 2024 due to Musk’s incendiary political rhetoric and conduct.
In contrast, Tesla’s energy business fared much better, with revenue increasing 113% to $3.06 billion for the three months that ended Dec. 31, 2024.
Source: https://www.cnbc.com/2025/01/29/tesla-tsla-2024-q4-earnings.html