Tesla's Stock Decline Continues Amid Missed Earnings Estimates

Tesla's stock has dropped significantly following its Q4 earnings miss, with shares trading 42.3% below their 52-week high. Despite long-term gains, recent performance shows a decline of 30.2% YTD, raising concerns for investors.

Date: 01-03-2025

AI Rating: 4

Tesla, Inc. has recently encountered challenges highlighted in its Q4 earnings results. **Earnings Per Share (EPS)** reported a non-GAAP figure of $0.73, which fell 5.2% short of analyst expectations. The **Revenue Growth** was 2.1 year-over-year at $25.71 billion, but it missed estimates by 6%, suggesting weaker-than-expected demand or pricing pressures.

The company also experienced declines in profitability, indicated by the **Profit Margins** with gross margin dipping to 16.3% and operating margin at 6.2%. This decline may point to increased costs or pricing challenges that could keep investors cautious. **Automotive revenue** specifically had a significant shortfall, with expectations not met by 7.5% at $19.8 billion.

In terms of trading performance, the stock has been particularly volatile, down 15.3% over the past three months. Investors may find the current trading situation concerning as the stock has traded below its 50-day moving average since January

Despite these shortcomings, Tesla's long-term potential remains, especially with plans to launch its Full Self-Driving (FSD) and Robotaxi businesses later in the year. Analysts remain cautious overall, providing a consensus "Hold" rating.

Stocks: TSLA F