Tesla’s Q4 Earnings: What to Expect
As Tesla prepares to release its fourth-quarter results, analysts are eagerly anticipating the electric vehicle maker’s performance. With a steep rally in the company’s stock price since President Donald Trump’s election, investors are betting on favorable policies and less oversight for Tesla.
Deliveries and Discounts
In early January, Tesla reported deliveries of 495,570 for the fourth quarter, with a total of 1.8 million for the full year. This marks the company’s first annual decline. To boost sales, Tesla offered discounts on inventory vehicles and special discounts for referrals in North America. In China, the company cut prices on its popular Model Y SUVs before debuting a refreshed version.
Margins and Guidance
Given the discounts, margins are likely to be a key focus on the earnings call, along with guidance for Tesla’s core automotive and energy businesses in 2025. The company’s growing energy division, which generates revenue from sales and use of its big, backup batteries, will also be under scrutiny.
Autonomous Vehicle Technology
Tesla’s plans for autonomous vehicle technology are a hot topic, with over 100 inquiries submitted to the Say Technologies forum. While Elon Musk has promised to turn existing cars into robotaxi-ready vehicles, the company has yet to deliver a safe and reliable system. Competitors like Waymo, WeRide, and Pony.ai are already testing and operating driverless ride-hailing services.
Musk’s Impact on the Company
Shareholders are also seeking information about Musk’s obligations at the White House and the impact of his political and public conduct on the company. His recent offensive jokes and gestures, as well as his promotion of Germany’s far-right party AfD, have drawn criticism from Democrats and leaders around the world. According to Brand Finance, Tesla’s brand value shed $15 billion in 2024 due to multiple factors, including Musk’s incendiary rhetoric and conduct.
What’s Next for Tesla?
As Tesla navigates the challenges and opportunities of 2025, investors will be watching closely for signs of growth and innovation. With its energy division expanding and autonomous vehicle technology on the horizon, the company’s future looks bright – but only if it can overcome the controversies surrounding its CEO.
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