Topline
Tesla’s stock went up on Thursday, even though the company reported lower earnings for the fourth quarter. This is the second year in a row that Tesla made less money. Investors liked what CEO Elon Musk said about the future and new production plans, including plans for a “robotaxi,” which is a driverless taxi.
A Tesla charging station in Germany.
dpa/picture alliance via Getty Images
Key Facts
Tesla made $25.7 billion in sales last quarter. This is less than expected. The earnings per share were $0.73, which is also below estimates.
In 2024, Tesla’s full-year income was $8.4 billion, down 23% from last year. However, their total revenue went up slightly to $97.7 billion.
Tesla thinks its car business will grow again in 2025. They will begin making a driverless taxi next year and cheaper cars in the first half of 2025.
After the earnings report, shares fell 5% but then rose 5% the next day, showing mixed reactions from investors.
Crucial Quote
“There is a path where Tesla could be the most valuable company in the world,” Musk said. Currently, Tesla is worth $1.3 trillion.
Key Background
This year, Tesla delivered around 1.79 million cars, a decline from previous years. Despite this, Tesla’s stock has increased more than 100% over the last year.
Further Reading
Vocabulary List:
- Earnings /ˈɜːrnɪŋz/ (noun): The amount of money a company makes after expenses are deducted.
- Revenue /ˈrɛvənjuː/ (noun): The total income generated by the sale of goods or services.
- Decline /dɪˈklaɪn/ (verb): To decrease or diminish in quantity quality or value.
- Production /prəˈdʌkʃən/ (noun): The process of manufacturing or creating goods.
- Investor /ɪnˈvɛstər/ (noun): A person or entity that allocates capital with the expectation of a financial return.
- Valuable /ˈvæljuːəbl/ (adjective): Worth a great deal of money or having great utility or importance.
