Why did TSLA's Q4 2024 revenue miss expectations?

Tesla's Q4 2024 revenue of $25.71 billion missed expectations by approximately $1.43 billion, which is a significant shortfall considering the company's historical performance and the market's high expectations. Tesla's Q4 revenue falling short of expectations can be attributed to **Decreased Vehicle Deliveries in Key Markets** and **Impact of Price Cuts**:

1. **Decreased Vehicle Deliveries in Key Markets**:
- **China Market Struggles**: Tesla's sales in China, which were already under pressure due to increased competition, faced additional challenges leading up to the New Year. This period typically sees a slowdown in sales as consumers await new models or price cuts. Tesla's deliveries in China fell by 17.3% year-over-year to 33,155 units last week compared to the previous year's 40,020 units.
- **Global EV Market Slowdown**: Tesla's global EV sales have been affected by a general slowdown in the EV market. This is evident from the 6% year-over-year increase in deliveries to 462,890 units in Q3, which was a modest growth considering the extensive white-knuckle moments seen throughout the first half of the year.
2. **Impact of Price Cuts**: Tesla's aggressive pricing strategy, including price cuts and incentives, has been a key driver of its sales volume but has also impacted its revenue. The company's focus on affordability has led to lower average selling prices, which in turn affect revenue despite higher delivery volumes.

In summary, Tesla's Q4 revenue miss can be attributed to a combination of decreased vehicle deliveries in key markets and the impact of price cuts. These factors, coupled with increased competition and a general slowdown in the EV market, have affected Tesla's revenue performance despite its strong delivery numbers.

|code|Ticker|Name|Date|Revenue Surprise|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|TSLA|TSLA.O|Tesla|2024 Q1|-1.039E9|2.1301E10|185|
|TSLA|TSLA.O|Tesla|2024 Q2|7.7E8|2.55E10|185|
|TSLA|TSLA.O|Tesla|2024 Q3|-1.88E8|2.5182E10|185|
|TSLA|TSLA.O|Tesla|2024 Q4|-1.433E9|2.5707E10|185|