Tesla Stock Plummets 12% as Production Growth Outlook Dims

Tesla stock fell 12% after reporting Q4 earnings that missed estimates and issuing a downbeat full-year production outlook, with adjusted EPS of $0.71 and revenue of $25.17 billion. The company warned that its vehicle volume growth rate for 2024 may be notably lower than in 2023 due to the launch of the next-generation vehicle at Gigafactory Texas, and CEO Elon Musk confirmed that the next-gen vehicle will be coming in the second half of 2025. Tesla's drop in profitability is attributed to downward pressure on margins, cost-cutting efforts, and various challenges including rental car firm Hertz shedding EVs, production halts, and Musk's demand for more stock. Despite reporting record Q4 deliveries and strong demand for the Cybertruck, Tesla's stock has lost over 26% this year. Musk also expressed concerns about maintaining control of the company to pursue its AI ambitions.