Tesla's annual profits have fallen to their lowest level since the pandemic, with net income dropping 46 per cent to $3.8bn (£3bn) last year. The decline marks the second consecutive year of steep falls, despite the introduction of more affordable models and Elon Musk's pledge to focus on the business after his foray into US politics.
The electric vehicle maker lost its crown as the world's biggest EV maker to a Chinese rival and faced significant sales boycotts, partly linked to Musk's right-wing political stances. For the fourth quarter, net income fell 61 per cent to $840m, though adjusted earnings per share of 50 cents beat analysts' forecasts of 45 cents.
Gross profit margins improved to 20 per cent in the last quarter, up from 16 per cent a year earlier. Tesla's stock rose 9 per cent over the past year, buoyed by investor optimism over Musk's vision for robotaxis and humanoid robots. Analysts expect further details on these plans during a conference call later today.
However, challenges remain. Sam Abuelsamid of Telemetry noted that Tesla's aging product line is becoming less competitive, while Musk's political involvement has turned off customers. Additionally, European regulators have not yet approved Tesla's partial self-driving software, a move that could have boosted sales.
On a positive note, Tesla's energy storage business saw revenues surge 25 per cent to $3.8bn in the fourth quarter, driven by demand from data centres. The company also removed safety drivers from its robotaxi service in Austin and plans aggressive expansion into other cities.
