Tesla stock is trading slightly higher hours after the electric vehicle maker reported fourth-quarter earnings earnings and beat its own earnings. Plus, the biggest news on Tesla’s 2023 roadmap is that the next Cybertruck is on its way to production later this year.
per quarter, tesla (TSLA) mentioned:
This revenue represents another record high for Tesla, up more than $2 billion sequentially from the third quarter and nearly $7 billion sequentially.
At the profitability end, Tesla reported adjusted net income of $4.1 billion, nearly $400 million more than in the third quarter and $1.3 billion more than a year ago. Tesla said it had “sufficient liquidity” to fund its product roadmap and capacity expansion plans.
Gross margin came in at 23.8% (25.4% estimated), with auto gross margin coming in at 25.9% (28.4% estimated). While Tesla founded a number of price cuts In the US, China (for the second time) and some European markets, those reductions didn’t happen until the first quarter of this year, so those impacts didn’t show up in the fourth quarter results. However, investors will still be keen to track gross margin numbers, which are the envy of the auto world (GM’s fourth-quarter adjusted margin for EBIT. reached 9.4%).
Tesla said it can maintain profit margins despite lower ASP (average selling price) as proven over the years, by using “lower cost models, building local and more efficient factories, and lowering the cost of vehicles and operating leverage.”
Tesla has maintained its long-term delivery goal of 50% CAGR (Compound Annual Growth Rate) even though deliveries have topped the mark in recent quarters. “For 2023, we expect to remain ahead of our long-term compound annual growth rate of 50% with approximately 1.8 million vehicles for the year,” the company said in a quarterly update.
Tesla said its production and delivery challenges in 2022 were “largely centered in China,” but that it had largely been “operating near full capacity for several months.” Tesla doesn’t expect huge volume increases from Giga Shanghai in the near term.
Tesla also revealed that the Cybertruck is on track to begin production later this year, and that its next-generation platform is in development, with more details emerging at its March 1 Investor Day.
Looking at the earnings call, investors and analysts will focus on any clues to Tesla’s demand story, and whether these sharp price cuts across the board are boosting deliveries in the first quarter. Learn about the new After the Call program from Yahoo Finance.
This story is evolving. Check back for updates.
Pras Subramanian is a correspondent at Yahoo Finance. You can follow it Twitter and on Instagram.
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