Tesla’s Merchant margin in the fourth quarter

On By Littum

By Abhirup Roy and Akash Sriram

(Reuters) -tesla quarterly results fell under Wall Street targets on Wednesday, as financing offers and discounts did not increase the demand for the aging lineup but eroded profits.

Tesla’s valuation has risen with the election of US President Donald Trump, who is a close ally by CEO Elon Musk, but the electric car company issued a dip in deliveries last year and raised pressure for it to roll a new, lower price, as well as they Autonomous vehicles and software, as Musk says, supports its financial future.

Tesla said it was about to roll out cheaper vehicles in the first half of this year. Shares fell 3.4%.

Tesla has used cheap funding to pump up demand, a strategy saleic had predicted would erode the car industry’s profit margins in future quarters as the company absorbs the impact of high interest rates.

Tesla’s profit margin from the fourth quarter from the sale of vehicles, excluding regulatory credits, dropped to 13.59% from 17.05% in the previous three-month period, according to Reuters calculations. Wall Street had expected the figure to be 16.2%, according to 23 analysts examined by visible alpha.

Revenue was $ 25.71 billion for the October-December quarter compared to $ 27.27 billion estimates, according to estimates prepared by LSEG.

The EV -Pion’s annual deliveries fell for the first time last year due to higher borrowing costs and intense competition.

Rivals such as China’s BYD as well as European producers BMW and Volkswagen have launched new cheaper models to capture market share.

Tesla has said it expects volume growth of 20% to 30% in 2025, and investors believe a cheaper model based on current platforms to be launched in the first half and higher delivery of cybertruck will help reach The target.

However, the company has not revealed details of pricing, features and how it would be different from current offers.

The company’s gross marginal accounted for 16.3% in the period in October-December, lower than estimates of 19.03%, according to 20 analysts examined by LSEG. Tesla published a 19.8% profit margin in the third quarter.

(Reporting Akash Sriram in Bengaluru; Writing Peter Henderson; Editing Sriraj Kalluvila and Rod Nickel)