Tesla sales disappoint, but Elon Musk vows new cars ‘will be in the wild, with no one in them'

Product Development and Launch - Tesla is on track to roll out new, cheaper electric vehicle models in the first half of 2025 [1] - The company will start testing an autonomous ride-hailing service in June, with initial tests in Austin, Texas, and unsupervised tests in other states including California [1][3] - Tesla plans to use its current electric vehicle platform and production lines to produce more affordable models this year, instead of building a new cheaper vehicle platform [7][8] - Commercial-scale production of a robotaxi is planned for 2026 at its Texas factory [7][8] Financial Performance and Cost Management - Tesla's fourth-quarter profit margin from vehicle sales, excluding regulatory credits, fell to 13.59% from 17.05% in the prior three-month period [10] - Revenue for the October-December quarter was $25.71 billion, below estimates of $27.27 billion [10] - Costs of goods sold hit their lowest level ever in the fourth quarter, at less than $35,000, driven by lower raw material costs [4] - The company has been able to execute on cost reduction, which cushioned the impact of lower profit margins [5] Market and Competitive Landscape - Tesla's market value has soared with the election of President Trump, who is a close ally of CEO Elon Musk [2][6] - The company's annual deliveries dropped for the first time last year due to higher borrowing costs and intense competition [11] - Rivals such as China's BYD, as well as European manufacturers BMW and Volkswagen, have launched new cheaper models to capture market share [11] - Tesla expects the vehicle business to return to growth this year after a small drop in 2024, with vehicle sales projected to grow 20% to 30% in 2025 [12] Investor Sentiment and Future Prospects - Shares rose 5% as Tesla announced cost-cutting measures and progress on new vehicle development [2] - Investors are optimistic about the potential of Tesla's full self-driving (FSD) technology and robotaxi services in the next couple of years [9] - Prospects of self-driving technology and a forecast for a 50% jump in deployments at the energy storage unit are encouraging investors [13] - Tesla's recommitment to delivering new vehicles in the first half of the year and reduced costs have been positively received by shareholders [4]