Tesla missed expectations at its first major reporting point of the new year on Thursday, as Elon Musk’s trillion-dollar automaker turns the page on a 2024 rollercoaster ride marked by slowing expansion in its core EV business and a stock market rally after the win. of President-elect Donald Trump, a close aide to Musk, the world’s richest man.
Tesla delivered 495,570 electric vehicles to consumers in the fourth quarter of 2024, the company announced Thursday morning.
That is below consensus analyst forecasts of 498,000 deliveries, according to FactSet.
Compared to 2023’s final quarter, Q4 deliveries jumped by 2.3%, marking the second consecutive quarter of year-over-year growth for Tesla.
Tesla shares fell about 6% in early afternoon trading, with the delivery data being a catalyst for the stock’s volatility.
Trading at about $375, Tesla’s share price fell below $400 for the first time Thursday since Dec. 6, hovering about 20% below the all-time high set in mid-December.
Thursday’s selloff wiped out around $175 billion in market value for Tesla, a loss almost equivalent to the entire valuation of AT&T.
“The miss reflects a relatively aged product and increased availability of lower priced competition globally” for Tesla electric vehicles, explained Morgan Stanley analyst Adam Jonas in a note to clients.
1. 79 million. That’s the number of cars delivered through Tesla in 2024, down 1. 1% from 2023’s record of 1. 81 million. Tesla had reported year-over-year expansion of at least 35% since 2016, according to FactSet’s reach of knowledge.
“This is a respectable delivery figure” and the sell-off is a “knee-jerk reaction,” Wedbush analyst Dan Ives, one of the most bullish analysts covering Tesla, wrote in a note to clients.
Tesla will report Q4 earnings Jan. 29. Consensus Wall Street forecasts point to mixed results in a record $99.7 billion in revenue and $8.1 billion in net profit, the weakest annual bottom line figure since 2021.
In the second and third quarters of 2024, Tesla experienced its first year-over-year drop in deliveries since 2020, contributing to the stock market decline. But its percentage value rose to a 63% gain in 2024 as investors emerged from the recession. in the core electric vehicle business to the prospects for Tesla’s self-driving initiatives, which will most likely face a much more favorable regulatory environment under Trump.
Musk’s net worth fell to $12 billion in Thursday’s sale, but he remains the world’s richest user with a fortune of $409 billion. His 13% stake in Tesla, valued at about $153 billion, is the largest contribution to his fortune, which is also bolstered by multibillion-dollar stakes in user aerospace company SpaceX and its generative synthetic intelligence startup xAI.
Tesla made headlines Wednesday after a Cybertruck, the company’s newest vehicle model, exploded in an incident that police are investigating as a possible terrorist attack. The explosion, which Musk said was caused by “a very giant firework and/or a bomb carried on the bed,” killed the occupant of the vehicle and injured seven other people.
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