Tesla earnings arrive as EV maker struggles to hit top speed

Core Viewpoint - Tesla Inc is facing challenges with disappointing delivery numbers and a decline in annual delivery volumes for the first time in its history, leading to a significant drop in share price [1][6] Delivery Performance - Tesla delivered 459,445 electric vehicles in the fourth quarter, falling short of Wall Street's expectations of around 500,000 [1] - The total deliveries for the year reached 1.77 million, marking the first annual decline in delivery volumes [1] Product Developments - The company has introduced a refreshed Model Y in China, with first deliveries expected in March, but analysts do not see it as a game changer [2][3] - Analysts from Bank of America express concerns about the lack of upcoming catalysts for growth, leading to a downgrade of the stock [3] Financial Outlook - The Wall Street consensus for 2024 anticipates record revenues of $99.7 billion and a net profit of $8.1 billion, which would be the lowest since 2021 [8] - The forecast for fourth-quarter EPS is $0.64, an increase from $0.57 in the same quarter the previous year [8] Growth Projections - Analysts predict that delivery growth will slow further in 2025, with management's guidance of 20%-30% growth being optimistic [9] - The new Model Q is expected to take longer to ramp up, and the Cybercab may be delayed past 2026 due to the need for further development of full self-driving software [9] Market Challenges - Tesla is experiencing subdued growth for the next two years, with challenges related to both variable and fixed costs, and margin pressures from competitors [6] - The political involvement of CEO Elon Musk has raised concerns among consumers and corporate fleet managers, potentially impacting brand perception [7]