Tesla (TSLA) has pledged a return to growth in 2025 after disappointing fourth-quarter results. The electric vehicle maker reported revenue of $25.7 billion, short of analyst expectations, but still up 2% from the previous year.
CEO Elon Musk announced that paid, unsupervised Full Self-Driving (FSD) will be available throughout the US by the end of 2025 and globally by the end of 2026. This news boosted shares in early trading on Thursday, jumping nearly 4%.
Musk also mentioned that FSD will be a key focus for bulls, with Wedbush analyst Dan Ives saying it’s expected to drive growth.
For the fourth quarter, Tesla reported an adjusted earnings per share of $0.73, less than Wall Street analysts’ expectations. The company’s operating income was down 23% from last year due to increased costs associated with artificial intelligence and R&D projects.
Despite this, Tesla said its energy storage business will continue to grow, with deployments expected to rise by 50% year-over-year.
The company plans to launch new products, including more affordable models, in the first half of 2025. It also expects vehicle volume to return to growth due to advancements in autonomous technology and the launch of FSD.
Tesla’s stock closed out 2024 on a positive note, with Musk becoming one of Trump’s allies during the election campaign. However, the company’s auto business missed analyst expectations, reporting an 8% decline in total auto revenues for the fourth quarter.
The company’s CFO, Vaibhav Taneja, said Model Y production will be shut down for a short time as the new model changeover occurs, which may impact margins.
Source: https://finance.yahoo.com/news/tesla-stock-rises-after-company-pledges-return-to-growth-after-q4-results-disappoint-230732196.html