Tesla's Q4 Disappointment: Anticipation for Inexpensive Electric Car by July, Focus Shifting to Optimus and AfD Shift in Focus
In the world of electric vehicles (EVs), Tesla continues to make strides in its innovation. The company has recently commenced initial production of its more affordable EV models, based on simplified versions of the existing Model 3 and Model Y platforms. Volume production is planned for the second half of 2025, with general availability expected in Q4 2025. This affordable model is not a new compact design, as some rumors suggested, but rather a stripped-down Model Y variant, aiming to reduce cost by simplifying features such as interior materials and roof design.
Tesla is focusing on ramping up production carefully, prioritizing maximizing output of current models while avoiding complexity. However, no further details were provided about the new EVs Tesla plans to produce in the first half of 2025, except for the more affordable one and the compact Tesla to be introduced.
Regarding Tesla's humanoid robot, Optimus, the latest search results do not provide updated information from 2025. As of prior public disclosures, Tesla has been developing Optimus as a general-purpose humanoid robot designed for tasks such as manufacturing and potential home assistance. Tesla is preparing a production line for 1,000 units per month of Optimus, followed by one for 10,000 units and then one for 100,000. However, no recent details or production updates were found in the current search.
In other news, the AfD, a German political party, has dropped its resistance to the Tesla factory in Grünheide near Berlin. On the other hand, if the AfD becomes part of the new government in Poland, further funding for electric vehicles is not to be expected. Meanwhile, a new electric vehicle subsidy program will start in Poland in February, with up to around €9,500 in funding.
Tesla is also preparing to launch a paid, driverless robotaxi service in the US city of Austin in June. The Model Y, a best-selling Tesla vehicle, will be produced in all four of its global factories starting in February 2025, causing several weeks of production downtime in Q1.
In terms of financials, Tesla generated around $25.7 billion in revenue and earned $0.73 per share in Q4 2024, both falling short of analyst expectations. Tesla had around 126,000 employees at the end of 2024, about 10 percent fewer than a year earlier. The margin in the auto business excluding CO2 credit sales fell to 13.6 percent, the lowest in five years.
CEO Musk stated that several more US cities will follow Austin as soon as possible, likely by the end of the year. Tesla's CFO Vaibhav Taneja stated that they are on track to launch a more affordable electric vehicle in the first half of the year. However, Tesla did not reiterate its forecast of 20-30 percent more electric vehicle sales in 2025 as earlier predicted by Musk.
In summary, Tesla is moving forward with its plans for an affordable electric vehicle and the development of its humanoid robot, Optimus. While no recent updates were found for Optimus, production is expected to begin for the more affordable EV in the first half of 2025. The company is also preparing for the launch of a driverless robotaxi service in Austin, and continues to expand its operations in the US.
- The expansion of Tesla's business ventures extends beyond electric vehicles, as the company is also developing a general-purpose humanoid robot, Optimus, envisioned for tasks like manufacturing and home assistance.
- In the realm of finance, Tesla's Q4 2024 earnings report revealed that the company generated $25.7 billion in revenue, but fell short of analyst expectations in terms of revenue and earnings per share.
- Amidst the technological advancements in the business sector, politics play a significant role, as shown by the AfD party's stance on the Tesla factory in Grünheide, potentially impacting electric vehicle funding in Poland.
