Elon Musk, founder, CEO, and chief engineer of SpaceX, CEO of Tesla, CTO and chairman of Twitter, Co-founder of Neuralink and OpenAI, at VIVA Technology (Vivatech)

Tesla Stock Plummets 12%, Grim 2024 Production Outlook

According to Yahoo Finance, Tesla’s stock (TSLA) faced a significant setback, plummeting 12% following the company’s Q4 earnings report, which not only missed estimates but also provided a gloomy production outlook for the year ahead.

While Tesla reported a Q4 revenue of $25.17 billion, which was slightly below the expected $25.87 billion, it marked a 3% increase from the previous year. However, Tesla’s adjusted EPS of $0.71 failed to meet the $0.73 expected by analysts, and its adjusted net income of $2.48 billion fell short of the $2.61 billion anticipated by the Street. As a result, Tesla’s stock has declined by over 26% since the beginning of the year.

In terms of its full-year production outlook, Tesla announced that its vehicle volume growth rate for 2024 might be “notably lower” than that achieved in 2023. This announcement indicated that the company might not reach the Street’s estimated production volume of 2.19 million for 2024, which would have represented a 21% increase over 2023.

During a call with analysts, CEO Elon Musk confirmed that Tesla’s next-generation vehicle is slated for release in the second half of 2025, emphasizing the revolutionary nature of its manufacturing platform.

Tesla’s decrease in profitability can be attributed to declining margins, largely stemming from the company’s cost-cutting initiatives in late 2022. The Q4 gross margin of 17.6% fell short of the estimated 18.1% and marked a significant drop compared to previous years.

Additionally, several factors have contributed to Tesla’s recent challenges, including headlines about Hertz reducing its EV fleet, Tesla’s price reductions in China, a production halt in Berlin, and Elon Musk’s call for more stock. While Tesla reported record-breaking Q4 deliveries of 484,507 units, surpassing Street estimates, challenges remain for the company, especially concerning the production ramp-up of the highly anticipated Cybertruck.

Musk also addressed his recent comments about securing greater control of Tesla to achieve the company’s ambitious AI goals. He expressed concerns that, with his current shareholding, he might have limited influence in the future, potentially facing the risk of being voted out by shareholder advisory firms like Institutional Shareholder Services (ISS) and Glass Lewis.

In summary, Tesla’s recent stock decline is primarily attributed to missed Q4 earnings expectations, a cautious production outlook for 2024, and various external factors affecting the company’s performance. Despite these challenges, Tesla continues to break delivery records, with significant expectations surrounding the launch of its next-generation vehicle and manufacturing platform in the coming years.

Author: Madison Cates

Title: Managing Editor


Research journalist, Freelance writer, Managing editor

  • Expertise: automotive content, trending topics.
  • Education: LeTourneau University, Bachelors of Science in Business Administration.
  • Over 400 articles and short news pieces published across the web.

Experience: Madison Cates is a journalist located in the great state of Texas. She began writing over eight years ago. Her first major research piece was published by the Journal of Business and Economics in 2018. After growing up in a household of eight brothers and a dad who was always restoring old Camaros, she naturally pivoted her freelance career into the automotive industry. There, she found her passion. Her experience paved the way for her to work with multiple large corporations in automotive news and trending topics. Now, she now finds her home at Wealth of Geeks where she proudly serves as Managing Editor of Autos. Madison is always down to geek out over the latest beautiful cars on the market, and she enjoys providing her readers with tips to make car ownership easier and more enjoyable.

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