Tesla sees disappointing fourth-quarter earnings amid declining car deliveries | Tesla

Tesla reported earnings for the fourth quarter of 2024 on Wednesday after US stock markets closed, capping a bruising year for the company’s sales but a stellar one for its stock price.

The car company reported $0.73 per share and $25.71bn in revenue, slightly below Wall Street analysts predictions of revenue coming in at $27.22bn.

Tesla’s shares fell about 4% in after hours trading.

Elon Musk’s electric carmaker has struggled in recent years to compete with cheaper alternatives to its electric vehicles from competitors such as China’s BYD, which overtook Tesla in the last quarter of 2023 to become the world’s top electric manufacturer of electric vehicles. Tesla regained the top spot for the first three quarters of 2024, thanks in part to steep price cuts.

In its earnings report on Wednesday, Tesla reported 495,570 deliveries for the fourth quarter and 1.8m for the full year. This is the company’s first annual decline, which follows a year of repeatedly failing to meet quarterly delivery targets in 2024.

European subsidies for electric cars have declined, hurting Tesla in that market, where October registrations of Tesla vehicles fell by 24%. Some Wall Street analysts expect demand for Teslas to increase after the US Federal Reserve cuts interest rates.

Tesla’s disappointing delivery numbers point to its offerings failing to woo new customers last year. The trapezoidal, Hot-Wheels-esque Cybertruck, released in November 2023 after lengthy delays and priced at roughly $80,000, has produced sales numbers that have not compensated for the decline in demand for Tesla’s older models.

Musk presented the Tesla Cybercab, which he called a self-driving taxi, in October, though it will not be on sale for some time, especially with analysts predicting that completely autonomous driving software is nowhere near road-ready. Tesla is under federal investigation for the alleged use of its full self-driving feature in multiple fatal crashes in the US.

Musk himself has threatened to step away from the company after a protracted legal battle over his compensation, set at $56bn but rejected twice by a judge.

Nevertheless, Tesla’s stock price has climbed more than 100% over the past year, rising 75% in the past six months alone. Musk’s proximity to Donald Trump has buoyed investors’ confidence in the billionaire’s ability to ensure a friendly regulatory and commercial environment for Tesla.

The president, for his part, has threatened tariffs on a wide range of goods, including cars from China, which could strongly favor Tesla.