News - TeslaTesla posts shaky finish to 2024Tesla’s last quarter income fell 71 per cent to $US2.3b, new models to return profit31 Jan 2025 By MATT BROGAN TESLA has reported a fourth-quarter net income fall of 71 per cent to $US2.3 billion ($A3.7b) as its margins fell victim to sales incentives and discounts.
The Texas-based EV maker said most of its net income decline came from a $US5.9 billion ($A9.5b) one-time non-cash tax benefit in the final quarter of 2024, making for an “unfavourable comparison” against the previous quarter.
Total revenue during the most recent quarter is reported to have risen 2.1 per cent to $US25.7 billion ($A41.5b), the company said, while energy revenues more than doubled to $3.1 billion ($A5.0b).
According to Reuters, Tesla’s fourth-quarter profit margin from vehicle sales, excluding regulatory credits, fell to around 14 per cent from 17 per cent in the preceding quarter.
Tesla said it expects to return to volume growth this year (2025) after its global sales decline in 2024 to 1.79 million vehicles from 1.81 million a year earlier.
Most of Tesla’s sales come from just two models, the Model 3 sedan and Model Y SUV – which was recently renewed for the 2025 calendar year.
“Preparations are underway across our existing factories for the launch of new products in 2025, including more affordable models,” said Tesla in its fourth-quarter shareholder letter,
“With the advancements in vehicle autonomy and the introduction of new products, we expect the vehicle business to return to growth in 2025.”
CEO Elon Musk said that Tesla expects deliveries to grow between 20 and 30 per cent this year.
In Q4 of 2024, Tesla produced 459,445 vehicles and deployed 11.0GWh of energy storage solutions. Globally, Model 3 and Model Y production combined to tally 436,718 units, with other models, including the Cybertruck, totalling 22,727 units.
Across the calendar year, those numbers rise to 1,679, 338 Model 3 and Model Y units and 94,105 others.
But with softer EV sales in major global markets, including the US and Europe, it appears Tesla will need to fast-track lower cost versions of its current range if it is to keep ahead of increasing competition.
Tesla has yet to reveal details of its long-promised entry-level EV – originally slated for delivery in the first half of 2025 and likely dubbed the Model 2 – and has yet to announce more affordable versions of the Model 3 and Model Y as planned.
Instead, the most recent update to the Tesla Model Y increased in price, jumping $7500 to begin from $63,400 plus on-road costs.
Runout discounts of between $4000 and $7000 are available on existing Model Y inventory.
The Tesla Model 3 is currently available from $54,900 plus on-road costs.
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