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Teslas Q4 Earnings, Robotaxis On The Horizon, But Challenges Remain

January 31, 2025

Palo Alto, CA - January 30, 2025 - Tesla released its fourth-quarter earnings report yesterday, revealing mixed results and highlighting the company's ambitious plans for the future. While Tesla saw growth in vehicle deliveries and energy storage, revenue and profits fell short of analyst estimates.

Despite these challenges, CEO Elon Musk doubled down on the company's commitment to Full Self-Driving (FSD) technology, announcing plans to launch a paid robotaxi service in Austin, Texas, as early as June. This service, powered by Tesla's "Unsupervised FSD," would allow customers to hail autonomous rides in Tesla vehicles. Musk envisions expanding this service to other cities later in the year, with Tesla owners eventually able to contribute their own vehicles to the robotaxi fleet in 2026.

However, the path to widespread robotaxis is not without obstacles. Tesla faces intense regulatory scrutiny regarding the safety of its FSD system. Musk acknowledged that the company is proceeding cautiously, aiming for a safety level significantly above that of the average human driver.

"We need to be confident that the probability of injury or accident is extremely low before we allow eyes-off / Unsupervised FSD on customer vehicles," Musk stated during the earnings call.

In addition to FSD development, Tesla is also focusing on expanding its Supercharger network and improving its battery technology. The company recently enabled 325kW charging at its V4 Superchargers and is making progress in addressing battery pack production constraints.

Despite the ambitious vision for robotaxis and other advancements, Tesla's Q4 earnings report revealed a decline in revenue and profits, raising concerns among some investors. The company attributed this to price reductions on its vehicles and increased competition in the electric vehicle market.

Looking ahead, Tesla expects vehicle deliveries to return to growth in 2025. The company's success in navigating regulatory hurdles and achieving its ambitious FSD goals will be crucial for its future growth and profitability.

January 31, 2025