Tesla's stock jumps after disappointing financial results were announced for the last quarter of 2024.

Tesla, Inc's stock recorded an increase of 4% in after-hours trading on Wednesday evening, despite disappointing earnings results for the last quarter, which concluded a year that saw only a 1% rise in revenue, while profits sharply declined compared to the previous year. According to the quarterly performance report, Tesla announced a revenue increase of about 2% compared to last year, reaching $25.7 billion, which is below expectations that had indicated quarterly revenue would rise to $27.2 billion. The adjusted earnings per share were recorded at $0.73, below expectations of $0.76. For the entirety of 2024, Tesla demonstrated a 1% annual revenue increase, reaching $97.7 billion, while net income fell by 53% during 2024, settling at $7.09 billion compared to the previous year. Tesla stated that operating income was negatively affected by costs associated with artificial intelligence and other research and development projects, in addition to the declining average prices of its current vehicles. Tesla also reaffirmed its expectations for the automotive sector to return to growth in 2025, after total automotive revenues decreased by 8% in the fourth quarter compared to the same period last year, and by 6% in 2024 compared to 2023. Total vehicle production also dropped by 7% in the fourth quarter, while deliveries increased by 2%. Despite this, the world’s leading electric vehicle manufacturer committed to returning to growth in 2025, detailing efforts made over the past year aimed at stimulating the next wave of growth for the company. This includes manufacturing capabilities for new models, artificial intelligence training computing, and energy storage manufacturing capacity. In the same context, Tesla emphasized that it is on the right track to launch new and cheaper models in the first half of 2025 and will begin testing a paid self-driving car service in June. During pre-opening trading on Thursday in the U.S. stock market, Tesla's stock (NasdaqGS: TSLA) rose by about $11 or 2.91%, trading close to the level of $400.43.