Investing.com -- Tesla Inc (NASDAQ: TSLA ) shares reversed losses to rise 4% in after-hours trading after the electric vehicle maker signaled a return to growth in 2025 despite reporting fourth-quarter revenue that missed Wall Street estimates.

Revenue came in at $25.71 billion, falling short of analysts’ expectations of $27.23 billion, as slowing demand weighed on sales. Adjusted earnings per share were $0.73, missing the $0.76 consensus estimate.

Tesla’s gross margin stood at 16.3%, while its operating margin came in at 6.2%.

Tesla has been navigating a tough market, contending with rising competition, shifting consumer demand, and price cuts aimed at defending sales.

The company projected that the Model Y will once again be the world’s best-selling vehicle across all categories in 2024. It also outlined plans for its Cybercab robotaxi, which will follow an “unboxed” manufacturing strategy and is set to enter volume production in 2026. A U.S. rollout of Tesla’s robotaxi business is expected later this year, pending regulatory approvals.

Tesla said its new product approach should drive more than 60% production growth over 2024 levels before requiring further investment in manufacturing lines. The company is also working on launching its supervised Full Self-Driving system in Europe and China in 2025.