Tesla Stock: Q4 Earnings Miss Sparks Growth Concerns

Tesla's fourth-quarter 2024 performance fell short of Wall Street expectations, with revenue reaching $25.71 billion, significantly below analysts' projected $27.23 billion. The electric vehicle manufacturer reported an adjusted earnings per share of $0.73, missing the anticipated $0.76. More notably, the company experienced its first delivery decline in over a decade, with approximately 1.79 million vehicles delivered in 2024, marking a slight decrease from the previous year. Despite achieving a quarterly delivery record of 495,570 units in Q4, this figure still fell short of the targeted 515,000 vehicles. The company's financial metrics showed some stability, with a gross margin of 16.3% and an operating margin of 6.2%.

Future Outlook Drives Market Response

Looking ahead, Tesla maintains an optimistic stance, projecting that its Model Y will retain its position as the world's best-selling vehicle in 2024. The company has announced ambitious plans for 2025, including a projected production increase of over 60% and the expansion of its autonomous driving system into European and Chinese markets. After initial skepticism, investors responded positively to these future prospects, with the stock recovering to gain more than 4% in after-hours trading, despite earlier losses.