Tesla reported weaker-than-estimated Q4 2024 results, but the stock received a boost due to the promise of more affordable vehicles. Key Figures vs. Bloomberg Consensus: Revenues: $25,707 million (+2% YoY) vs. $25,200 million estimate. EBIT: $1,583 million (-23%) vs. $2,670 million. EPS: $0.66 (-71% YoY) vs. estimated $0.67. Analysis of Tesla's Results: Disappointing Performance Tesla's Q4 2024 results were weak and fell short of estimates. Demand weakened, leading to a -1.1% drop in deliveries (to 1.78 million units) for the full year. The company's strategy to increase volume involves maintaining discounts and financing facilities, which has negatively impacted margins. The gross margin for the auto business closed the quarter at 16.6% vs. the estimated 18.9%, aligning with the margin achieved in Q4 2023. Excluding regulatory loans, the margin was 13.6% vs. an estimated 16.2% and 14.8% in Q4 2023. In Q3 2024, it reached 17.0%. Despite these challenges, the sto...
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