Tesla (-3.1%) achieved a lower result in the fourth quarter of 2023 than what the market expected. Elon Musk’s group achieved a turnover of $25.17 billion, while the market expected $25.87 billion. In contrast, free cash flow was well above consensus at $2.1 billion ($1.45 billion).
After-hours EPS (earnings per share) amounted to $0.71, which was slightly lower than the expectation ($0.73) of fund analysts. The reaction was strong: the stock fell about 3%.
It is also notable that Tesla is the only tech share in the Magnificent Seven is that left behind. It is also the most expensive share, measured by the price-earnings ratio of 54.
Declining gross margin
Tesla’s gross margin on vehicles fell again this quarter, albeit slightly: 17.6% lower than 17.9%. This is due to price reductions, which are still happening at a faster pace than cost savings. The automaker still managed to reduce costs in the fourth quarter.
Tesla on 2024 guidance: “Our company is currently between two major growth waves: the first one began with the global expansion of the Model 3/Y platform and the next one we believe will be initiated by the global expansion of the next-generation vehicle platform.
In 2024, our… pic.twitter.com/65b4OvipbV
— Sawyer Merritt (@SawyerMerritt) January 24, 2024
2024-01-24 21:34:45
#Teslas #profit #turnover #disappointing #IEX.nl
