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EV maker Tesla (TSLA) fell short of fourth quarter estimates for revenue and adjusted earnings per share (EPS), posting revenue of $25.71 billion (below expectations for $27.21 billion) and earnings of $0.73 (below expectations for $0.75).
The company's automotive revenue fell 8% year-over-year, mainly due to price cuts across its vehicle lineup. Despite Tesla’s long-term vision for autonomous driving and robotics, short-term fundamentals have investors cautious.
Canaccord Genuity managing director George Gianarikas joins Morning Brief to discuss Tesla's latest results, citing optimism for growth in the company and uncertainty in the company's near-term outlook.
He highlights that Tesla missed its 2024 delivery guidance and did not commit to its 2025 growth targets: "Objectively, we weren't that excited about the results and some of the near-term commentary left us less than nourished. I mean, for first, they basically didn't commit to their 20 to 30% growth guidance for 2025."
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"They missed their 2024 delivery guidance, which we knew about a month ago. Their margins were pretty weak... And, if we're reading this correctly, the full self-driving rollout in Europe and China is not going to happen in the first quarter," he says, calling the results "kind of squishy."
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This post was written by Josh Lynch