Tesla has reported a rare earnings miss for the last quarter of 2024, with shares initially falling before rebounding to a narrow gain. The company’s quarterly revenue of $25.7 billion was about $1.5 billion less than expected, leading to thinning profit margins.
The news comes as Tesla faces increased competition from electric vehicle offerings from other automakers in the US, China, and Europe. This has squeezed the prices it can charge, contributing to its earnings miss.
Despite missing forecasts, Tesla’s plans for more affordable models “remain on track” for start of production in 2025, according to the company. The rollout of its Cybercab model of driverless robotaxi is also expected in 2026.
CEO Elon Musk has been actively involved in politics and policy initiatives, including supporting far-right parties in Germany and the UK. This has raised concerns among liberal car buyers who may be hesitant to purchase an EV due to Musk’s involvement with polarizing politicians.
The company also faces US regulatory concerns that could impact its future sales and profitability. The Trump administration has vowed to end a $7,500 tax credit for new EVs and reduce financial support for clean energy efforts. While this could benefit Tesla by reducing competition from legacy automakers, it would also reduce revenue from emission regulation credits.
Source: https://edition.cnn.com/2025/01/29/business/tesla-earnings/index.html