Tesla's Q4 earnings report revealed a significant 70% reduction in net profit, falling short of market expectations.
1min read Tesla (TSLA.US) released its latest earnings on Wednesday (January 29): the company earned $2.32 billion in the period from October to December 2024, a 71% decline from the same period last year. The company's performance this year still disappointed Wall Street, as its business was boosted by a one-time tax incentive from the US government last year, which was far above its historical levels.Tesla's quarterly revenue grew 2% to $25.7 billion in the fourth quarter of last year, below analysts' expectations of $27.1 billion; its automotive revenue fell 8% from $21.56 billion in the same period last year to $19.8 billion.Tesla said the decline in sales was mainly due to the average selling price of its Model 3, Y, S and X series cars falling. The company launched a series of incentives in the quarter to stimulate demand for electric vehicles, including low-interest loans and discounts, which also reflects the growing competitiveness of traditional carmakers and emerging Chinese electric vehicle brands.Meanwhile, Tesla's stock price soared in the past few months due to Musk's close ties with US President Trump. After the latest earnings report was released on Wednesday, Tesla's stock price immediately fell, but the market quickly recovered its sentiment, with the stock up 4.15% after hours.
