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Tesla’s shares joined Thursday even after having published a report on the results of the fourth quarter which did not succeed and sealed a second consecutive year of drop in profits, while investors have focused on the bullish comments CEO of Tesla, Elon Musk, and updated production calendars, including for its “Robotaxi” CAB without driver.
A Tesla load station in Germany.
Key facts
Tesla brought in $ 25.7 billion in sales in the last quarter and $ 0.73 of profit adjusted per share, both very lower than the estimates of the consensual analyst of $ 27.3 billion in sales and 0.77 $ of profit per share, according to FostSet.
The final publication of the 2024 profits finalized another difficult year for Tesla’s net profit, while its net profit in previous year came to $ 8.4 billion, a drop of 23% compared to 2023 and a decrease 40% compared to the record of $ 14.1 billion $ 20.1 billion dollars, although full. The revenues of the year increased by $ 97.7 billion, an improvement of 1% compared to the 2023 file.
But Tesla expects its basic vehicle activities “return to growth” in 2025, said the company in its presentation of profits.
The company has also announced its intention to start production next year on its driver -free taxi vehicle “Cybercab” and start making its cheaper cars in the first half of 2025.
The market reaction was a roller coaster: shares dropped 5% after negotiation hours on Wednesday, based on a drop of 2% during regular hours, before getting back to 5% of ‘Here Thursday’s market opening, because investors apparently oscillated between the disappointing financial results of the fourth quarter and the financial results and the positive production updates.
The whip was confused even the most established analysts of Wall Street.
Morgan Stanley analyst Adam Jonas questioned customers in a note “what else can be the cause of the stock debate”, while JPMorgan analyst Ryan Brinkman, asked why Tesla Share “in one way or another”.
Crucial quote
“I am not saying that it is an easy path, but I see a path for Tesla being by far the most precious company in the world,” said Musk during the Wednesday winning call. “There is a path where Tesla is worth more than the first five companies combined,” added Musk. Tesla is the eighth most precious company in the world in the world with a market capitalization of $ 1.3 billion, while the five largest companies are worth nearly $ 15 billion in total. The highly optimistic musk also teased the idea of an income opportunity of $ 10 billion for the “Optimus” humanoid robots from Tesla.
Chief critic
“This increase in Tesla’s shares did not experience any relation to the financial performance of the company during the quarter which has just been completed or its growth prospects in the coming year,” wrote Brinkman, Who added that Tesla’s course of action was completely divorced fundamentals. “
Key
During a call for results last January, Musk characterized the narrowing of the bottom line while Tesla moving “between two major growth waves”, an assertion agreed by Wall Street. Analysts provide an increase of more than 80% of the available cash flows from Tesla in 2025 and an additional leap of 50% in 2026. Earlier this month, Tesla announced that it had delivered around 496,000 vehicles in the fourth quarter, carrying its deliveries in full year to 1.79 million cars, marking the first decrease from one year to the next since at least 2016. Despite deliveries and scoring profits, Tesla shares have increased everything at 2024 and early 2025, because its share price increased by more than 100% in the last 12 months. In addition to the media threshing on Tesla’s progress in artificial intelligence, including its next driver -free taxis and its Humanoid Optimus robots, Tesla benefited from a positive and positive reaction of investors to Trump’s victory, with actions More than 50% since the day of the ballot. Analysts say Tesla will likely benefit from more loose regulations under Trump, with whom Musk has an extremely close relationship, speaking to its inauguration and giving more than $ 200 million to its electoral efforts. The always controversial musk landed in hot water for its right -wing activism, including a gesture to the inauguration that some have characterized as a Nazi salute.
Tangent
Musk did not respond to the problems of conflict of interest of certain shareholders on the profit call of the fourth quarter. The Tesla shareholder forum used for profits call issues includes more than 100 questions about Musk, including those asking how the role of Musk in the White House reduces time with Tesla and if Tesla has lost sales in Reason for Musk’s free opinions, but none about Musk’s political activities received an answer on Thursday.
Forbes assessment
Musk is by far the richest person on the planet with a net value of more than $ 410 billion, according to our latest estimates. Tesla is the biggest contributor to her fortune, because her participation in shares of 13% is worth more than $ 160 billion with another 9% bonus price for the call waiting for Musk, with Musk’s Stakes in her other companies , in particular the startup generating the XAI and the aerospace and the SpaceX firm communications constitutes the major part of the rest of its fortune.
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