Tesla misses on earnings and revenue for fourth quarter

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  • Tesla reported disappointing results on the top and bottom lines.
  • The stock fell about 4% in extended trading.

Tesla shares fell about 4% in extended trading on Wednesday after the electric vehicle maker reported earnings and revenue for the fourth quarter that trailed analysts’ estimates.

Here’s how the company did vs. estimates from LSEG:

  • Earnings per share: 73 cents, adjusted, vs 76 cents expected
  • Revenue: $25.71 billion vs $27.26 billion expected
  • DISAPPOINTED INVESTORS

Now that the Tesla CEO is firmly planted in Washington, D.C., in a high-profile advisory role, shareholders in the electric vehicle maker have some questions.

On the forum Tesla uses to solicit investor inquiries in advance of its earnings calls, more than 100 poured in from shareholders about Musk’s politics, including his official role at Trump’s Department of Government Efficiency (DOGE) and his endorsement of far-right candidates.

“How much time does Elon Musk devote to growing Tesla, solving product issues, and driving shareholder value vs. his public engagements with Trump, DOGE, and political activities?” one retail investor asked, adding, “Do you believe he’s providing Tesla the focus it needs?”

In addition to contributing $270 million to help Trump and other Republican candidates and causes, Musk spent weeks on the campaign trail during the fourth quarter working to propel Trump back into the White House. After Trump’s election victory, Musk then spent considerable time far away from Tesla’s factory floor at Trump’s Mar-a-Lago resort in Florida.

One of the top-voted questions about Musk asked how much time he intends to spend “at the White House and on government activities vs time and effort dedicated to Tesla.”

Musk has also involved himself in German politics, giving a full-throated endorsement of the country’s far-right, anti-immigrant party AfD (Alternative für Deutschland) in December ahead of the February election.

According to research and consulting firm Brand Finance, the value of Tesla’s brand fell by 26% last year, with factors including Musk’s “antagonism,” Tesla’s aging lineup of EVs and more. The researchers found that fewer consumers would recommend or consider buying a Tesla now than in previous years.

During public remarks following last week’s inauguration, Musk repeatedly used a gesture that was viewed by many historians and politicians as a Nazi salute. Ruth Ben-Ghiat, whose scholarship has focused on fascism, described it as “a Nazi salute and a very belligerent one,” while neo-Nazis praised Musk for his antics.

Some investors asked whether Tesla had “sales lost due to political activities of Musk,” how the company plans “to respond to Musk’s now infamous Nazi salute,” and how Tesla “is addressing the negative impacts of Musk’s public views and activities.”

Ahead of the third-quarter call in October, investors had a lot of questions and concerns about similar issues regarding Musk’s involvement in politics, though that was before Trump’s election victory.

CNBC

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