Tesla Inc. entered its earnings day under a cloud, and some of what investors had feared played out on Wednesday as the EV maker warned it may grow slower this year to focus on its next-generation vehicle. Its 2024 vehicle volume-growth rate “may be notably lower than the growth rate achieved in 2023, as our teams work on the launch of the next-generation vehicle at Gigafactory Texas,” the EV maker said in a letter to shareholders accompanying fourth-quarter results after the bell Wednesday.
The company is in between “two major growth waves.” On a call with analysts following results, Chief Executive Elon Musk echoed that in-between time, adding that Tesla
TSLA,
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will make sure the next wave “is executed as well as possible.” The company is “very far along” on the next-generation vehicle and currently planning to start its production in the second half of 2025, Musk said, adding that after a production start in Texas, a future factory in Mexico likely would be the newest EV’s second production location. Tesla will identify other locations outside of North America at the end of the year, he said. In the fourth quarter, Tesla earned $7.9 billion, or $2.27 a share, compared with $3.7 billion, or $1.07 a share, in the year-ago period. Adjusted for one-time items, the EV maker earned 71 cents a share. Sales rose 3% to $25.17 billion, from $24.32 billion a year ago, as rising vehicle sales and growth in other parts of the business were offset by a reduced average vehicle selling …
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The company is in between “two major growth waves.” On a call with analysts following results, Chief Executive Elon Musk echoed that in-between time, adding that Tesla
TSLA,
-0.63%
will make sure the next wave “is executed as well as possible.” The company is “very far along” on the next-generation vehicle and currently planning to start its production in the second half of 2025, Musk said, adding that after a production start in Texas, a future factory in Mexico likely would be the newest EV’s second production location. Tesla will identify other locations outside of North America at the end of the year, he said. In the fourth quarter, Tesla earned $7.9 billion, or $2.27 a share, compared with $3.7 billion, or $1.07 a share, in the year-ago period. Adjusted for one-time items, the EV maker earned 71 cents a share. Sales rose 3% to $25.17 billion, from $24.32 billion a year ago, as rising vehicle sales and growth in other parts of the business were offset by a reduced average vehicle selling …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]