With Tesla’s earning day approaching, the limelight is once again on the world’s prominent EV manufacturer and its maverick CEO Elon Musk. Expected to arrive this Wednesday, Tesla’s yearly and fourth-quarter earnings pose anticipation across the global market.
Any dedicated follower of Tesla since its 2010 public debut is all too familiar with the surprises, typically emanating directly from Musk, intertwined with their earnings call. Keeping with the tradition, this time around, these surprises hold a significant stake with Musk’s current position in the Trump administration.
Despite the slight 2.2% drop in the annual delivery of 1.77 million vehicles in 2024 from 1.81 million in 2023, the fourth quarter witnessed a positive 2.28% acceleration compared to the same period in 2023. Even after such promising figures, the market’s focus is directed towards Musk’s projected sales and profit margin for 2025 amid the year-to-year drop in deliveries.
With an eye on Musk’s reaction to President Trump’s executive order impacting EV charging station funding, the market is also awaiting updates on the delayed Tesla Roadster, the Tesla Semi, and how its Supercharger network is faring with non-Tesla EVs.
The Ambitious AI
However, the star interest lies in Musk’s forecast about the autonomous functioning of Tesla vehicles- a factor directly responsible for the company’s high market valuation. Public excitement escalated following a social media post by Tesla showing an AI-driven Tesla covering a mile stretch to a parking spot.
Aided by Tesla’s negotiations with officials in Austin, a launch of Tesla’s robotaxi fleet in Texas looks probable, despite California’s stricter regulations for robotaxi services.
Looking Back
Looking back at 2024’s earnings doesn’t instill much confidence. Tesla reported nearly flat third-quarter earnings of $25.2 billion in sales and a $2.2 billion profit. Year-over-year, its earnings stand at a total of $25.17 billion in Q4 2023, with an exceptional $7.9 billion net profit primarily due to a one-time tax benefit.
Tesla’s sales of regulatory credits, reaching a staggering total of $739 million in Q3, proved to be a boon amidst the general reluctance of other automakers to fully shift towards electric vehicles. However, the stability of this revenue stream under the Trump administration’s policy changes is questionable.
Tesla’s future profitability is uncertain as Trump fellowships threaten California’s emission rules and several EV funding programs crucial for Tesla.
Original source: Read the full article on TechCrunch
