Elon Musk says 2025 will be a ‘pivotal year for Tesla’ despite sales slowdown
On Wednesday, electric vehicle (EV) giant Tesla reported a significant decline in profit for 2024, with its net income dropping over 70 per cent to $2.3bn (£1.83bn).
The firm reported a profit of $2.3bn (£1.84bn) in the last three months of the year.
Profit at Elon Musk’s group dropped despite an increase in sales, which rose two per cent in the fourth quarter to $25.7bn (£20.63bn) from $25.2bn (£20.23bn) in 2023.
For the year, sales rose $96.8bn (£77.71bn) in 2023 to $97.7bn (£78.43bn).
AJ Bell’s Dan Coatsworth said: “Elon Musk might want to stop spending all his time at the White House looking to elevate his status on the political stage, judging by the disappointing results from Tesla.”
Coatsworth noted: “Quite whether Musk has been granted special treatment remains to be seen, but it’s somewhat ironic when the person tasked with helping the government become more efficient has an empire beneath him showing considerable cracks.
Profit and revenue were helped by $692m worth of sales of regulatory credits to other automakers.
However, despite the tepid results, the stock bounced back in after-hours trading.
Hargreaves Lansdown’s Susannah Streeter said: “The market’s quick recovery suggests investors are looking past the miss, amid expectations for a new affordable model being launched onto the market.”
Elon Musk touts Tesla’s growth
Elon Musk was quick to take the initiative after the results.
“2025 is going to be a pivotal year for Tesla”, he said.
Talking about Tesla’s plans to introduce a fully automated vehicle in 2026, Musk said: “This is not some far-off, mythical situation.”