Tesla Q4 results fall short of expectations
Tesla’s fourth-quarter earnings were slightly lower than analysts’ predictions. The company reported an adjusted earnings per share (EPS) of 71 cents, while the average estimate was 74 cents. Tesla’s revenue for the quarter was $25.17 billion, slightly below the projected $25.6 billion.
Investors were primarily concerned about global demand for electric vehicles and the profitability of Tesla’s cars. Despite being the top-selling EV manufacturer in 2023, Tesla was overtaken by China’s BYD in Q4. As a result, Tesla’s stock fell by about 6%.
Tasha Keeney highlights Tesla’s AI opportunities
Tasha Keeney, Director of Investment Analysis & Institutional Strategies at Ark Investment, believes that Tesla’s results are not as disappointing as they may seem. She argues that investors are too focused on short-term effects and should consider the long-term potential. Keeney points out that Tesla’s plan to invest in robot taxis could be highly beneficial, as the AI market is expected to be worth trillions of dollars. She also notes that Tesla is the only profitable EV manufacturer and expects further growth with upcoming cost reductions.
Tesla pushes forward with AI amid EV market competition
While the demand for EVs remains strong, price competition has increased over time. Elon Musk, CEO of Tesla, has expressed his commitment to leading in robotics and artificial intelligence by stating his need for at least 25% voting shares in the company. This move would almost double Musk’s current ownership.
Tesla has been actively involved in AI development, evident through products like Dojo, an AI supercomputer, and advancements in Autopilot and Full Self-Driving software. The company’s dedication to AI is further demonstrated by its early-stage robotics project, Optimus. However, it’s important to note that Tesla’s autonomous driving systems are still classified as driver-aid technologies.
Hot Take: Tesla’s AI potential shines despite disappointing Q4 results
Despite Tesla’s fourth-quarter results falling short of expectations, Tasha Keeney from Ark Investment believes that the market should be excited about the AI opportunities for the company. She highlights Tesla’s profitability compared to other EV manufacturers and emphasizes the potential growth from investing in robot taxis. With the increasing competition in the EV market, Tesla’s push into AI and robotics positions it as a leader in the industry. While short-term performance may impact investor sentiment, Keeney urges a focus on the long-term prospects and potential for Tesla to dominate the AI market.
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