Quarterly financial results disclosed by Tesla for the last three months of 2024; projections for electric vehicle sales and Full Self-Driving system expected
In a recent development, Tesla, the leading electric vehicle (EV) manufacturer, has released its Q4 2024 earnings report, painting a picture of both challenges and opportunities for the company.
Despite a significant 71% decline in net profit, the company managed to beat earnings per share (EPS) forecasts, reporting $0.72 per share compared to an expected $0.60. However, revenue for Q4 2024 was slightly below Wall Street’s estimate, coming in at roughly $25.18 billion.
The decline in net profit can be attributed to pressures possibly from reduced sales growth or cost fluctuations. Despite this, vehicle deliveries peaked in Q3 2024 at a record 462,890 units, providing momentum through the end of the year.
Looking ahead to 2025, Tesla is optimistic about a 20-30% increase in its own EV sales. This growth is expected to be driven by the launch of more affordable vehicle models planned for the first half of the year. The mass production of their Cybercab model is targeted for 2026, which could further expand sales volumes.
Analysts' consensus EPS forecasts for Tesla in 2025 have recently declined, with the yearly EPS forecast lowered from about 2.56 to 2.4, and quarterly EPS estimates for early 2025 also reduced to around $0.49 per quarter. These downward revisions reflect cautious expectations about profitability and revenue growth.
Tesla's profitability trends in 2024 showed some recovery after earlier margin compression caused by aggressive price cuts and increased competition. The company's cost structure might benefit from the advancing 4680-battery cell technology reaching cost competitiveness, which could improve margins in 2025 and beyond.
In a notable statement, CEO Elon Musk expressed optimism about the AI sector, including autonomous cars and robots, having much more potential.
Tesla is expected to address shareholder questions and provide further insights into its future business development during a shareholder meeting scheduled for this late Wednesday. The Q4 report is expected to provide valuable insights into the company's financial health and strategic direction for the coming year.
These points reflect the most recent financial data and analyst forecasts available as of August 2025. It is clear that while Tesla faces challenges, its strategic moves and advancements in technology position it well for future growth.
In this context, Tesla's strategic moves in business and technology, such as the launch of more affordable vehicle models and the mass production of the Cybercab, could potentially boost investing opportunities in the upcoming years. However, analysts' forecasts for Tesla's earnings per share (EPS) in 2025 suggest a cautious outlook due to concerns about profitability and revenue growth.
