Tesla, the electric vehicle giant, has reported lower-than-expected revenue and profit for the fourth quarter of last year. The company’s stock slid in extended trading as a result of the disappointing numbers. Despite an increase of just 1% in auto sales compared to the previous year, Tesla managed to achieve record-breaking delivery numbers with 484,507 deliveries in the fourth quarter and over 1.8 million for the entire year.
In terms of earnings, Tesla reported adjusted earnings of 71 cents per share, falling short of the 74 cents per share expected by LSEG (formerly known as Refinitiv). The company’s revenue for the quarter was $25.17 billion, slightly lower than the expected $25.6 billion. However, total revenue increased by 3% compared to the previous year’s figures of $24.3 billion.
One notable aspect of Tesla’s performance is its operating margin, which came in at 8.2% for the fourth quarter. Although this figure is lower than the 16% reported in the year-ago quarter, it is slightly higher than the 7.6% from the prior quarter. This indicates that Tesla has managed to maintain a relatively stable operating margin despite the challenges faced by the automotive industry.
While other U.S. automakers struggled to produce and sell a high volume of fully electric vehicles in 2023, Tesla’s delivery numbers soared. The company’s success can be attributed to hefty price cuts that made their vehicles more accessible to consumers. These price cuts helped Tesla achieve a record-breaking number of deliveries, surpassing all previous years.
Despite the lower-than-expected revenue and profit, Tesla’s net income for the fourth quarter more than doubled compared to the previous year. The company reported a net income of $7.9 billion, up from $3.7 billion in the same period last year. This significant increase in net income highlights Tesla’s ability to generate substantial profits despite the challenges faced by the industry.
Overall, Tesla’s fourth-quarter performance may have fallen short of analysts’ expectations, but the company’s ability to achieve record-breaking delivery numbers and double its net income is a testament to its resilience and market dominance. As the demand for electric vehicles continues to rise, Tesla remains at the forefront of the industry, setting new standards and pushing boundaries. With Elon Musk at the helm, the company is poised for further growth and innovation in the years to come.