Despite a Q4 revenue shortfall, Tesla’s stock rose as much as 5% after hours due to promises of launching new and more affordable models in the first half of 2025. The company also announced plans for the deployment of autonomous vehicles and the licensing of its full self-driving (FSD) driver assistance software to rivals.
Licensing FSD
CEO Elon Musk stated that the company is in conversation with other automakers regarding licensing FSD. However, Tesla will only consider licensing agreements where the deployment volume will be high. The company’s engineering team will focus on making the technology fully unsupervised, rather than sharing it with other carmakers.
Autonomous Ride-Hail Fleet Testing
Tesla will start testing autonomous ride-hailing services in Texas in June, with vehicles deployed with FSD. The company aims to launch unsupervised FSD in California before the end of the year and is optimistic about deploying it in other regions.
Current State of FSD
As of now, FSD requires active driver supervision. However, Musk expressed confidence that the technology will enable driverless driving in the near future, leading to increased interest from rival companies.
Why It Matters
Tesla’s Q4 revenue, earnings per share, and gross profit margin were below expectations. Despite this, the stock rose after the company announced plans to start production of new models, including more affordable ones, in the first half of 2025. Musk’s promises on FSD improvements also contributed to the rally.
Stock Performance
Tesla’s stock has seen a significant jump since the election of Donald Trump as President in November. The stock has more than doubled over the past year, with a closing share price of $389.10.
Future Outlook
With the company’s plans for new models, autonomous vehicles, and FSD licensing, Tesla is poised for a significant year ahead. The company’s focus on innovation and expansion is expected to drive growth and increase its presence in the electric vehicle market.