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On Wednesday, Tesla revealed that its profits for the fourth quarter were lower than expected, primarily due to a drop in vehicle prices. The company reported earnings of $2.3 billion, marking a significant 71 percent decline from the same period last year, which had included a one-time tax benefit. While revenues rose slightly by two percent to $25.7 billion, they did not meet analyst forecasts. Looking ahead, Tesla anticipates a recovery in volume growth by 2025.
The results -- the first since the return of Musk ally Donald Trump to the White House -- capped a mixed year for Tesla in which Musk's big bet on US electoral politics was countered by profit pressures as Tesla's streak of annual car volume growth came to an end.
Full-year auto sales fell one percent to just under 1.8 million vehicles. Tesla has been confronted by intensifying EV competition in leading markets, including China and the United States, where General Motors and Ford have introduced more models.
Another factor has been lower than expected volumes from the Cybertruck, Musk's futuristic auto giant that has won cheers from Tesla fans and jeers from critics. But Tesla expects growth in 2025.
"With the advancements in vehicle autonomy and the introduction of new products, we expect the vehicle business to return to growth in 2025," Tesla said. "The rate of growth will depend on a variety of factors, including the rate of acceleration of our autonomy efforts, production ramp at our factories and the broader macroeconomic environment."
The company also confirmed plans to unveil new, more affordable vehicles in 2025 and described as on track the launch this year of a new robotaxi venture in parts of the United States. Tesla watchers have been keen to hear more details from Musk on new vehicles and the latest projections on production. In October, Musk said he expected auto sales to increase 20 to 30 percent in 2025.
There is also much curiosity about how Musk's alliance with Trump -- part of the billionaire's increasingly assertive advocacy on behalf of far-right politicians worldwide -- will affect Tesla.
