Tesla to report fourth-quarter earnings amid declining car delivery numbers
Tesla to report fourth-quarter earnings amid declining car delivery numbers
Share:
Despite disappointing sales and delivery figures, the company’s stock price has doubled in the past year. Tesla will report earnings for the fourth quarter of 2024 on Wednesday after US stock markets close, capping a bruising year for the company’s sales but a stellar one for its stock price.
Wall Street analysts predict the company’s earnings-per-share will come in at $0.62 and revenue will be $27.22bn. Elon Musk’s electric carmaker has struggled in recent years to compete with cheaper alternatives to its electric vehicles from competitors such as China’s BYD, which overtook Tesla in the last quarter of 2023 to become the world’s top electric manufacturer of electric vehicles. Tesla regained the top spot for the first three quarters of 2024, thanks in part to steep price cuts.
Earlier this month, however, Tesla reported its first-ever decline in annual vehicle deliveries, a foreboding sign for earnings. The company repeatedly failed to meet delivery targets in 2024. European subsidies for electric cars have declined, hurting Tesla in that market, where October registrations of Tesla vehicles fell by 24%. Some Wall Street analysts expect demand for Teslas to increase after the US Federal Reserve cuts interest rates.
Tesla’s disappointing delivery numbers point to its offerings failing to woo new customers last year. The trapezoidal, Hot-Wheels-esque Cybertruck, released in November 2023 after lengthy delays and priced at roughly $80,000, has produced sales numbers that have not compensated for the decline in demand for Tesla’s older models.
