Tesla (TSLA, Financials) aims to introduce unsupervised Full Self-Driving in Austin by June 2025, with an expansion across the U.S. by the end of the year, Chief Executive Elon Musk said during the company's fourth-quarter earnings call.
The action fits Tesla's more general plan to establish leadership in robots and artificial intelligence.
Setting a record, the business supplied automobiles at an annualized pace around two million in Q4 2024. The Model Y remained the top-selling car in the world, therefore supporting Tesla's market leadership. Driven by lowered material costs, Chief Financial Officer Vaibhav Taneja pointed out that Tesla cut its cost per car to around $35,000. Still, reduced average selling prices caused automobile margins to drop.
Aimed at expanding its customer base, Tesla still has half of 2025 ahead to introduce a more reasonably priced model. Apart from that, the business is increasing the manufacturing of its Optimus humanoid robot; next year, several thousand units are expected. From the deployment of the robot, Musk underlined long-term income possibilities above $10 trillion.
Driven by Powerwall and Megapack demand, energy storage installations peaked never seen before. By 2025, the Shanghai Megafactory is projected to help to enable a 50% year-over-year rise in energy storage capacity.
Notwithstanding a $2.4 billion rise in capital expenditures, Tesla's free cash flow for the fourth quarter came at $2 billion, helping to contribute $3.6 billion for the year.
Still major hazards include production restrictions and regulatory obstacles. Although Tesla has advanced in autonomy, Musk said that in Europe and China especially, regulatory clearances will determine the rate of unsupervised FSD growth, thereby defining the speed of advancement. Analyzers also voiced worries about limited battery manufacturing, which would affect the expansion of energy storage as well as vehicles.
Although Tesla's ambitious vision calls for developing artificial intelligence-driven robots and extending its self-driving capabilities, execution concerns remain as investors are intently observing changes in the next quarters.
