Tesla (TSLA, Financial) anticipates increased vehicle sales to offset lower-than-expected earnings, leading to a post-market stock rebound. The electric vehicle manufacturer forecasts a "return to growth in 2025," citing advancements in autonomous driving and new model plans. Tesla also predicts accelerated growth in AI, software, and fleet-based profits, easing concerns about the electric vehicle market after reporting its first annual sales decline in over a decade.
Despite these projections, Tesla did not commit to CEO Elon Musk's ambitious target of 30% growth this year. The stock rose 3.2% after hours, recovering earlier losses, and has surged over 80% since the last earnings report, reflecting investor confidence in Musk's vision.
Ross Gerber, co-founder and CEO of Gerber Kawasaki, emphasized the need for Tesla to explore additional growth avenues. For the quarter, adjusted earnings per share were $0.73, falling short of analysts' average estimate of $0.75. Tesla confirmed plans to increase affordable car sales, with production starting in the first half of the year. The Cybercab is expected to launch in 2026.
