Fourth Quarter Updates from Tesla
Elon Musk has announced that Tesla is set to initiate its rollout of unsupervised autonomous vehicles starting in Austin, Texas by June, with expansions to several other American cities anticipated by year-end.
During Tesla’s fourth-quarter earnings call on Wednesday, Musk, alongside Tesla executives, discussed not only the advancements in their autonomous vehicles but also the production progress of the Optimus humanoid robots and an upcoming, more budget-friendly car model.
This earnings call was among Musk’s initial public engagements since taking on his new role as the director of the Department of Government Efficiency (DOGE) in the U.S., following the inauguration of President Donald Trump.
Musk detailed plans for deploying thousands of driverless cars to operate as robotaxis around the city where Tesla is headquartered. He explained that similar to the Airbnb model, Tesla owners will have the option to enlist their vehicles into the robotaxi fleet whenever they’re out of town, aiming for implementation by 2026.
“These Teslas will autonomously navigate the roads without any passengers as early as June,” Musk claimed. “This isn’t a distant, mythical scenario—it’s happening in just five or six months.”
Despite his enthusiasm, it’s worth noting that Musk has been making promises regarding robotaxis for several years without any having been realized to date, and he did not provide further specifics about how this paid service would operate.
Musk hopes that the unsupervised self-driving technology will advance to a point where drivers can safely divert their attention away from the road to their phones. He noted that these vehicles are already operating autonomously within Tesla’s Fremont factory in California.
“We need to ensure the safety risk is minimal before allowing drivers to focus on other activities like checking emails or texting,” Musk stated.
No new details were offered regarding the anticipated affordable Tesla model in terms of pricing, dimensions, or specifications.
Thomas Martin, a senior portfolio manager at Globalt Investments and a Tesla shareholder, remarked on Tesla’s punctuality with their latest vehicle delivery goals and their success in cutting costs, which had a cushioning effect against financial pressures in the fourth quarter.
“People are optimistic that full self-driving and robotaxi services might become a reality in the next few years,” commented Will Rhind, CEO of global ETF issuer GraniteShares. Musk also mentioned that some older Tesla models would need hardware upgrades to support full self-driving capabilities.
Tesla has benefited from low-cost financing to boost demand for electric vehicles; however, analysts have forecasted that this strategy might compress automotive profit margins in upcoming quarters as the company deals with elevated interest rates.
Tesla’s Fourth Quarter Financial Performance
Tesla reported a revenue of $25.71 billion for the October-December quarter, falling short of the $27.27 billion forecasted by analysts according to LSEG data. The adjusted earnings per share were 73 cents, slightly below the predicted 76 cents.
The company experienced its first annual decline in deliveries last year, attributed to higher interest rates and stiff competition. Competitors including China’s BYD and European manufacturers like BMW and Volkswagen have introduced more affordable models.
Tesla anticipates a rebound in vehicle sales this year after a slight dip in 2024. Late last year, Musk projected a sales growth of 20% to 30% in 2025, a forecast not reiterated in the latest results.
With President Trump’s recent promises to implement tariffs on imports from various U.S. trade partners, Tesla CFO Vaibhav Taneja noted that such tariffs could potentially impact Tesla’s profitability and business operations, as the company still relies significantly on overseas suppliers.
Following the earnings announcement, Tesla’s stock rose approximately 4% in after-hours trading, as the market responded positively to softer-than-expected vehicle sales growth projections for 2025.
Optimus Robots and Tesla’s Future Directions
Musk is pushing to significantly accelerate the production of Tesla’s Optimus humanoid robots, aiming to create thousands by 2025. He stated that these robots would serve more practical purposes than the vehicles, assisting in tasks ranging from musical performance to delicate manual operations.
Musk envisions that these robots will eventually become a major source of revenue for Tesla, although the timeline for this shift remains unclear. He likened the development process to constructing a moving train while simultaneously laying down the tracks and building the station it will arrive at.
“It won’t be long before we’re producing millions of these robots annually,” Musk predicted. “This exponential growth will transition from a phase where no one has humanoid robots to a scenario where we can’t produce enough to meet the demand.”
Looking Ahead: Affordable Cars and AI Innovations
Tesla is planning to introduce a more cost-effective car model in the first half of 2025, according to CFO Vaibhav Taneja.
Musk highlighted the pivotal role of AI development in shaping what he believes will be Tesla’s most transformative year in 2025. “There’s no other company that matches Tesla’s capabilities in real-world AI applications. I can’t even see who’s in second place,” he remarked.
The CEO also emphasized the significance of Tesla’s energy division as a key revenue contributor, noting that enhanced energy storage solutions will greatly increase the power supply capabilities to the electrical grid.
This story has been updated with additional information.
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Passionate about analyzing economic markets, Alice M. Carter joined THE NORTHERN FORUM with a mission: to make financial concepts accessible to everyone. With over 10 years of experience in economic journalism, she specializes in global economic trends and US financial policies. She firmly believes that a better understanding of the economy is the key to a more informed future.