What caused TSLA's EPS to decline in Q4 2024?

Tesla's EPS declined in Q4 2024 due to a combination of factors:

1. Interest Expenses: Tesla's EPS was negatively impacted by increased interest expenses, which rose to $1.93 billion, up from $0.94 billion in the same period last year. This significant increase in interest costs likely squeezed the profit margin, leading to a lower EPS.
2. Higher Interest Rates and Borrowings: Tesla's decision to extend its 5-year, 0% interest loan and the possibility of its extension could indicate the company's need for additional capital, which might have led to higher interest expenses. This is particularly notable given the current environment of rising interest rates, which have been a challenge for many companies.

In summary, the decline in Tesla's EPS in Q4 2024 was primarily caused by increased interest expenses, which may have been a result of the company's financing decisions and the broader economic environment of rising interest rates.