Tesla just posted a massive drop in annual earnings
Tesla reported earnings today and missed on both revenue and financials. The company’s net income dropped 53% in 2024 compared with 2023, and 71% in the fourth quarter. Tesla said declining average sales price and an increase in operating expenses driven by AI were responsible for the decline in profitability.
Tesla stock initially dropped down more than 3% in after-hours trading but has rebounded up to 4% as of 4:30 p.m. ET.
The company sold fewer cars than it had hoped last year, notching its first annual sales decline in more than a decade. Last quarter, Musk said sales would rise 30% this year, a hefty lift considering that even bullish investors think Tesla will only do half that.