- Tesla shares dropped nearly 7% on January 2nd due to disappointing Q4 2024 results, not the Cybertruck explosion
- Tesla produced 459,445 vehicles in Q4 2024, below the expected 506,000, and delivered 1,789,226 vehicles in 2024, down from 1.81 million in 2023
- CEO Elon Musk plans to boost productivity in 2025, targeting 2.5 million new vehicles and leveraging political support from President-Elect Donald Trump
Tesla shares came crashing down on January 2nd, following turbulent events regarding a potential terrorist attack involving a Cybertruck exploding in front of the Trump International Hotel in Las Vegas.
However, the reason for the stock price being down is not directly related to the attack, but rather to the disappointing 2024 Q4 results from the company. In a press release, Tesla shared the numbers related to the last quarter.
Investors were dissatisfied with the results, primarily due to the significantly lower numbers of new vehicles produced during that time. The expectations shared by Tesla were that the company would produce around 506,000 new vehicles—while the real number hit a significantly lower margin at 459,445 vehicles manufactured in that time.
Also, the company’s year-to-year productivity also dropped for the first time in years as Tesla delivered 1,789,226 vehicles in 2024, contrasting to 2023’s 1.81 million vehicles.
This development led the company’s shares $TSLA to drop by nearly 7% on Thursday, its worst-performing day in a very long time. According to Yahoo Finance, $TSLA is currently trading at $376.49 — its lowest value since December 5th, 2024.
Tesla Targets 2.5 Million New Vehicles in 2025
Despite this setback, the autonomous vehicle manufacturer is planning a big increase in productivity this year.
Its CEO Elon Musk received part of the backlash from 2024’s poor performance, with investors accusing the South African billionaire of spending too much time involved with U.S. Politics throughout the year.
However, after successfully backing Donald Trump to the presidency, this newfound collaboration could bear fruit for Tesla holders. The company plans to invest in the production of cheaper models in order to deliver 500,000 more vehicles in 2025, leading overall year-to-year releases closer to 2.5 million new Tesla models available.
If successful it would certainly be a great response to current critics. Adding to that, President-Elect Donald Trump has already publicly asserted that he would back the electric vehicle industry in August, during the Musk-backed campaign.
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