Topline
Tesla did not meet expectations in its first major data point of the new year Thursday, as Elon Musk’s trillion-dollar automaker turns the page on a rollercoaster 2024 marked by stalling growth in its core electric vehicle business and a sharp stock market rally following the victory of President-elect Donald Trump, a close associate of Musk, the world’s richest man.
A Tesla Cybertruck, the company’s newest vehicle model, in Boston.
Key Facts
Tesla delivered 495,570 electric vehicles to customers during the fourth quarter of 2024, the company announced Thursday morning.
That is below consensus analyst forecasts of 498,000 deliveries, according to FactSet.
Compared to 2023’s final quarter, Q4 deliveries jumped by 2.3%, marking the second consecutive quarter of year-over-year growth for Tesla.
Shares of Tesla dropped nearly 6% by early afternoon, with delivery data typically a catalyst for the often volatile stock.
Trading at about $375, Tesla’s share price fell below $400 for the first time Thursday since Dec. 6, hovering about 20% below the all-time high set in mid-December.
Thursday’s selloff wiped out around $175 billion in market value for Tesla, a loss almost equivalent to the entire valuation of AT&T.
Crucial Quote
“The miss reflects a relatively aged product and increased availability of lower priced competition globally” for Tesla electric vehicles, explained Morgan Stanley analyst Adam Jonas in a note to clients.
Big Number
1.79 million. That’s how many cars Tesla delivered in 2024, coming in 1.1% below 2023’s record 1.81 million. Tesla had reported at least 35% year-over-year growth dating back to 2016, the extent of FactSet data.
Chief Critic
“This is a respectable delivery number” and the selloff is a “knee jerk reaction,” Wedbush analyst Dan Ives, long one of the most bullish analysts covering Tesla, wrote in a note to clients.
What To Watch For
Tesla will report Q4 earnings Jan. 29. Consensus Wall Street forecasts point to mixed results in a record $99.7 billion in revenue and $8.1 billion in net profit, the weakest annual bottom line figure since 2021.
Key Background
During 2024’s second and third quarter, Tesla suffered its first year-over-year delivery declines since 2020, contributing to its stock market doldrums. But its share price roared to a 63% gain in 2024 as investors shifted their focus away from the slowing core EV business onto the potential for Tesla’s autonomous driving initiatives, which will likely face a much more favorable regulatory environment under Trump.
Forbes Valuation
Musk’s net worth fell by $12 billion during Thursday’s selloff, but he is still by far the richest person in the world with a $409 billion fortune. His 13% stake in Tesla, worth about $153 billion, is the greatest contributor to his fortune, which is also bolstered by multibillion-dollar stakes in the private aerospace firm SpaceX and his generative artificial intelligence startup xAI.
Tangent
Tesla was in the headlines Wednesday following the explosion of a Cybertruck, the company’s newest vehicle model, in an incident police are investigating as a possible terror attack. The explosion, which Musk said was caused by “very large fireworks and/or a bomb carried in the bed,” left the vehicle’s occupant dead and injured seven others.
Financial Market Newsflash
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