Summary
- Tesla’s 2024 saw its first annual sales decline, impacted by a price war and slowing EV demand.
- Despite this, Tesla’s stock price has doubled, possibly due to investor confidence in Elon Musk and his political connections.
- Tesla missed Q4 revenue estimates and profit declined, though energy storage deployments set a record.
- The company faces increasing competition, particularly from BYD, and regulatory uncertainty regarding emissions credits and EV subsidies.
- Tesla aims for a “pivotal” 2025, focusing on Full Self-Driving improvements and launching robotaxi services.
Yesterday Tesla reported narrower profit margins in its quarterly and annual results, stemming from its first drop in annual sales in its history in 2024. This drop is partly a consequence of a price war in the electric vehicle sector due to increasing competition and a slowdown in demand for EVs in the U.S. market. However, the company’s large investor segments seem to focus more on CEO Elon Musk’s link to President Donald Trump than on the troubling noises from the automaker behind Musk’s fortune.
Against expectations, the company’s stock price has doubled in the past year, despite disappointing sales and delivery figures and losing its title to BYD as the top EV maker. Tesla says 2025 will be a pivotal year in its history as it continues improving Full Self-Driving and expects to launch Robotaxi services in parts of the US later this year as well as FSD Supervised in Europe and China.
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