Tesla’s earnings day is here, bringing fresh insights into the company’s financial performance and future plans. As one of the world’s largest electric vehicle (EV) manufacturers, Tesla’s quarterly earnings report is closely watched, and CEO Elon Musk’s remarks often make headlines.
The company’s fourth-quarter and full-year earnings results will be released today after market close, followed by a webcast at 5:30 p.m. ET. Analysts and investors will be keen to hear updates on Tesla’s profits, production numbers, and long-term vision.
Financial results and 2025 outlook
One key figure to watch is Tesla’s revenue and net income for the quarter. Earlier this month, the company announced it had delivered 1.77 million vehicles in 2024, marking a 2.2% decline from 1.81 million in 2023—its first year-over-year drop. This decline could lead to lower revenue unless other divisions, such as energy storage or software services, offset the losses.
Despite the annual drop, Tesla saw a slight delivery improvement in the final quarter of 2024. The company delivered 495,570 vehicles in Q4, up 7% from Q3 and 2.28% higher than in 2023. These numbers may signal a positive shift heading into 2025, but investors will be looking for Tesla’s guidance on sales and profitability expectations for the coming year.
Beyond the financials, Musk’s comments on government policies could also impact Tesla’s outlook. Investors are watching for his reaction to former President Donald Trump’s recent executive order pausing the disbursement of funds from the Inflation Reduction Act and Bipartisan Infrastructure Law, which includes funding for EV charging stations.
Robotaxis and self-driving ambitions
One of Musk’s most ambitious promises—fully autonomous Teslas—remains a hot topic. The concept of a Tesla-operated robotaxi service has kept the company’s stock price high, even as fully self-driving technology remains in development.
Tesla recently shared a video on Musk’s social media platform, X, showing finished vehicles driving themselves to a delivery prep lot. Musk claimed that Tesla would allow customers in Texas and California to hail self-driving Teslas later this year. Bloomberg also reported that Tesla is discussing the launch of a robotaxi service with Austin and other Texas officials.
However, regulatory challenges remain, especially in California, where stricter policies make it more difficult to deploy autonomous taxis. Texas, where Musk has strong business ties, may be more willing to accommodate Tesla’s plans.
Tesla’s financial standing
Looking back at Tesla’s financials, the company reported US$25.2 billion in revenue and a US$2.2 billion profit in Q3 2024, showing little change from the previous year. In Q4 2023, Tesla posted US$25.17 billion in revenue and a net income of US$7.9 billion, including a one-time non-cash tax benefit of US$5.9 billion.
Tesla has also benefited from selling regulatory credits to other automakers. In Q3 2024, the company earned US$739 million from credit sales, following a record US$890 million in the previous quarter. However, Trump’s push to revoke California’s emissions waiver could threaten this revenue stream, potentially impacting Tesla’s financial stability.
As the earnings call approaches, all eyes are on Musk and whether Tesla’s 2025 strategy will reassure investors. Will the company maintain profitability and finally make its long-promised autonomous fleet a reality?
