Tesla annual profit plunges to lowest level since pandemic.

Key Highlights

• The stock is up 9% in the past year. Musk has been urging investors to focus less on car sales and more on what he considers a bright new future of robotaxis ferrying millions in cars without drivers, or even steering wheels, and robots watering plants and taking care of elderly parents.
• On a conference call, Musk said Tesla would be closing down production of two models, S and X, in the second quarter this year and converting a Fremont, California, factory to produce its Optimus robots. For the fourth quarter of last year, Tesla's net income also plunged, down 61% to $840 million, or 24 cents.
• Excluding one-time charges, net income totaled 50 cents per share, compared to analysts' forecasts of 45 cents.“They’ve got aging product that is less and less competitive as others manufacturers come out with new models, then there is the general brand destruction," said Telemetry analyst Sam Abuelsamid.
• "Musk‘s involvement in politics has turned off customers.”One bright point was Tesla's gross profit margins, which leapt to 20% last quarter from 16% a year ago.“Tesla’s ability to show improving profitably was a surprise,” said Morningstar analyst Seth Goldstein.
• “I think that is the reason the stock is up now.”Goldstein said he was also encouraged by plans outlined in Tesla’s earnings report to roll out robotaxi service in Houston, Miami and five other cities in the first half of this year. Investors cheered earlier this year when Musk shifted his focus back to the company after spending months as head of a government cost-cutting team in Washington.