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On Wednesday Afternoon, Tesla (TSLA, Financial) shares bumped up and down after a mixed fourth-quarter earnings report from the company. The EV company stock's initial plunge of 5 percent after-hours trading came back to gain 4 percent as investors took in not only weaker they-expected financials but also ambitious production plans.
According to a statement by Tesla, the company missed consensus estimates when it announced revenue of $25.7 billion for Q4 2024, down from $27.3 billion. Earnings per share (EPS) came in at $0.73, down from the expected $0.77. The 2024 results came in below what company executives had forecasted for the year, expecting in a letter that full-year net income would total $8.4 billion, a drop of 23% from 2023 and 40% down from the year-earlier peak of $14.1 billion.
Tesla pointed towards the dark, as it forecasted a return to vehicle growth in 2025 but lost ground on a key profit metric. Next year, production of its autonomous 'Cybercab' taxi is due to start, as well as cheaper new models in 2025.
Enthusiasm for advances in AI, as well as the tailwinds of regulations following Donald Trump's election victory, still buoyed Tesla stock up by over 100% in the past 12 months. Analysts said that the new administration's potential to shift policy should benefit Tesla. Investors will now watch and see if Tesla can execute its vision for AI and autonomous vehicles and whether the run will continue.
This article first appeared on GuruFocus.