Tesla saw its first annual decline in vehicle deliveries in 2024, but it looks like it will be a blip on the radar. In its Q4 and 2024 shareholder deck, Tesla is charting a path back to growth in 2025. Although unlike it has done in previous years, Tesla stopped short of providing specific sales targets.
Instead, the company has outlined a growth strategy that hinges on three core pillars: new vehicle launches, self-driving advancements, and energy storage expansion.
Affordable Tesla Models
Tesla is getting ready to release affordable EVs this year to reignite sales growth. The company has been developing a lower-cost vehicle platform, based on both the existing Model 3/Y platform and the next-gen platform. Tesla says these vehicles are slated for production in the first half of 2025.
Self-Driving and Robotaxi
One of Tesla’s biggest promises for 2025 is the expansion of Full Self-Driving (FSD) capabilities, with Musk announcing during the earnings call the planned launch of a paid FSD Unsupervised (robotaxi) service in Austin, Texas in June 2025. Musk went on to say that a launch in California is also planned for this year, but did not give a specific timeline. It was also said that the robotaxi service would launch in additional US markets before the end of the year.
Energy Business
Beyond vehicles, Tesla is positioning its energy business as a key driver of future growth. The company expects energy storage deployments to grow by at least 50% year-over-year in 2025. This includes the expansion of Tesla’s Powerwall and Megapack products, both of which are in high demand.
With continued investment in battery technology and grid-scale energy storage, Tesla’s energy division could become an increasingly important revenue stream, helping to offset the cyclical nature of the auto industry.
