Tesla is the world’s leading Electric Vehicle (EV) company in terms of sales and revenue. Its visionary but somewhat polarizing billionaire CEO, Elon Musk, leads the company from the front. Today Tesla is one of the best-known and most aspirational brands in the world. The company sees 2025 as an opportunity to extend its lead in EV and to be able to offer EVs to a wider cross-section of the population. This, alongside its push to get the go-ahead for its fully self-driving technology, is the priority this year.
- TESLA in 2024
In 2024 the EV producer achieved a number of significant milestones that underpinned its stock price throughout the year. The company delivered a record number of EVs in 2024, regularly beating market expectations and reinforcing confidence in the company. The company also expanded its manufacturing with the opening of new Gigafactories in locations in Europe and plans to open in India to increase production capacity. The opening of Gigafactories in other countries like Mexico is expected soon to meet demand in the American market. Progress has been made in developing its self-driving technology.
- CEO ELON MUSK: HIGHER RISK STRATEGY THAT PAID OFF - WHAT DOES IT MEAN FOR TESLA?
Elon Musk raised some eyebrows across Wall Street when he expressed support for Donald Trump in 2024 and then came out as a campaign donor and vocal supporter during the campaign. Traditional thinking suggested this could alienate some potential Tesla buyers. But the risk appears to be paying off, and Tesla’s stock price jumped by some 70% in the month before President-elect Trump was announced as the winner in November 2024. The risk was that had the Democrats under Harris won, Tesla could have faced increased scrutiny by regulatory authorities. Under the Republicans of Trump, however, Tesla is likely to enjoy corporate tax cuts and looser regulatory rules, which could benefit Tesla greatly. Indeed, Elon Musk has already been given an official role for the US government and will head an advisory department to cut government waste.
- TESLA’S RECENT EARNINGS AND UPCOMING FOURTH QUARTER EARNINGS
In the third quarter on October 23rd, Tesla beat earnings expectations with results showcasing a return to profit growth. In the earnings call, Elon Musk projected a delivery growth rate of 20%-30%. On January 29th, Tesla will publish its fourth quarter earnings, with annual revenue expected to total almost $100 billion. Traders will also be looking out for what CEO Musk says about the future direction of the company and the release of its vehicles and self-driving tech.
- PROJECT Q AND SELF-DRIVING; PROSPECTS FOR THIS YEAR
Details were revealed about project Q for the first time on December 5th. Project Q, or the ‘affordable Tesla,’ has been a major goal for the company and Musk for many years. The Model Q is expected to be priced below $30,000 with initial production at some 10,000 vehicles a week. The idea is part of Tesla’s strategy to increase market share, which would mean that both the luxury and the economy ends of the market are covered. In 2025 the company plans to push ahead with fully self-driving technology. The rollout has been slowed by safety regulations. However, Tesla is targeting states like California and Texas as among the first states it will attempt to roll out self-driving tech. This year promises to be an important one for Tesla and some important Silicon Valley allies now at the heart of the Trump administration. The incoming administration has already indicated that a federal framework for fully self-driving vehicles will be a priority. The framework is expected to ease regulations and more readily allow for the introduction of autonomous vehicles on public roads.
Conclusion –
There is strong optimism about Tesla’s future, with the upcoming launch of new vehicles such as the Robotaxi and Model Q. The shift towards fully self-driving technology has picked up pace, and the company is in a much stronger position to overcome any potential regulatory obstacles.