Tesla Inc

Tesla closed out 2024 on a disappointing note, missing Wall Street expectations on both the top and bottom lines as weakening vehicle pricing weighed heavily on results. The electric vehicle maker posted fourth-quarter revenue of $25.71 billion, up just 2.1% year-over-year but falling short of the $27.55 billion consensus by 6.70%, while non-GAAP EPS of $0.73 came in below the $0.76 estimate by 3.95%. The core culprit was a sharp 8% year-over-year decline in automotive revenue to $19.80 billion, driven by lower average selling prices on Model 3 and Model Y vehicles as Tesla leaned on pricing actions and financing incentives to sustain volume. GAAP operating income fell 23% to $1.58 billion, compressing the operating margin to 6.2% from 8.2% a year ago, even as record energy storage deployments of 11.0 GWh added a meaningful offset. Institutional investors have maintained conviction in the stock despite the earnings softness, with shares having risen roughly 92% over the past twelve months. Looking ahead, Tesla expects vehicle growth to resume in 2025, with more affordable models entering production in the first half of the year and energy storage deployments targeted to grow at least 50% year-over-year.