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Highlights
- Tesla reported a record fourth-quarter delivery of 495,570 vehicles, but fell short of analyst expectations.
- The company posted its first-ever annual decline in deliveries, totaling 1.79 million vehicles in 2024.
- Tesla's stock fell 6% following the report, but investors remain focused on long-term growth potential, particularly in energy and EV production.
Tesla (LSE:0R0X) has reported a record number of deliveries for the fourth quarter of 2024, with a total of 495,570 vehicles delivered, a record high for the company. Additionally, Tesla deployed 11.0 gigawatt hours (GWh) of energy storage products, also marking a record. However, despite these achievements, the figures fell short of market expectations, which had forecasted over 510,000 deliveries for the quarter, causing a 6% dip in the company’s share price on Thursday.
While the record quarterly performance was impressive, Tesla's full-year performance showed signs of strain. The company’s annual deliveries totaled 1,789,226 vehicles in 2024, marking its first-ever annual decline. This was down from 1.81 million vehicles delivered in 2023. The decline highlights the broader challenges facing the electric vehicle (EV) industry, particularly in the face of slowing global consumer demand.
Tesla’s quarterly deliveries were predominantly driven by its Model 3 and Model Y, which accounted for 471,930 units, while other models, including the Model S, Model X, and the upcoming Cybertruck, contributed 23,640 units. Despite the strong performance of these key models, the company’s overall delivery fell short of analysts’ forecasts, contributing to investor concerns.
Despite the disappointing full-year figures, Tesla’s energy storage deployment saw a significant increase, more than doubling to 31.4 GWh in 2024, in line with the company's expectations. Tesla also reiterated its optimistic outlook for 2025, with CEO Elon Musk forecasting 20%–30% growth in automotive deliveries, indicating a rebound as production ramps up.
Tesla’s performance in energy business revenue also showed promise, growing by 52% year-on-year, with the company reporting a record gross margin. On the automotive side, the production of its Cybertruck reached a key milestone, achieving a positive gross margin for the first time.
Investors will be closely watching Tesla's earnings report for the fourth quarter, set for release on January 29. While the delivery numbers have disappointed, the company’s revenue growth trajectory and profit margins will be key areas of focus. Tesla’s ambitious plans to introduce more affordable EVs starting in 2025 and ramp up production by 50% could also drive future growth.
Stock Performance and Speculation Around the Trump Rally
Tesla’s stock had a remarkable 2024, rising 63% overall despite a decline at the year’s end. The stock reached an all-time high of $489 on December 18, nearly doubling since the election of former U.S. President Donald Trump on November 5. This surge is partly attributed to the market’s optimism about Tesla’s prospects under a potential Trump administration, which could favor the company’s interests, particularly regarding autonomous vehicles and self-driving car regulations.
