Electric Vehicle Giant Announces Higher Fourth Quarter Revenue and Profit;  Cybertruck will begin production later this year

Electric Vehicle Giant Announces Higher Fourth Quarter Revenue and Profit; Cybertruck will begin production later this year

Tesla stock is trading lightly after hours after the electric vehicle maker reported higher fourth-quarter revenue and profit. Additionally, the biggest news for Tesla’s 2023 roadmap is that the next Cybertruck is on track for production later this year.

For the quarter, Tesla (TSLA) announced:

That revenue represents a new record for Tesla, up more than $2 billion sequentially from the third quarter and nearly $7 billion from a year ago.

On the profitability side, Tesla reports adjusted net income of $4.1 billion, nearly $400 million more than in the third quarter and more than $1.3 billion more than there is. a year. Tesla said it has “sufficient liquidity” to fund its product roadmap and capacity expansion plans.

Gross margin was 23.8% (25.4% Est.), with Automotive gross margin at 25.9% (28.4% Est.). While Tesla has instituted a number of price cuts in the US, China (for the second time), and some European markets, these cuts only happened in the first quarter of this year, so these effects are not visible in the fourth quarter results. However, investors will still be keen to follow the gross margin numbers, which are the envy of the automotive world (GM’s EBIT-adjusted margin last quarter was 9.4%).

Tesla said it could maintain its margins despite falling ASPs (average selling price) as it has proven over the years, through the use of “lower-cost models, building factories localized and more efficient vehicles, lower vehicle costs and operating leverage”.

Tesla maintained its long-term delivery target of 50% CAGR (compound annual growth rate) despite deliveries missing the target in recent quarters. “For 2023, we expect to remain ahead of the long-term CAGR of 50% with approximately 1.8 million cars for the year,” the company said in its quarterly update.

Tesla said its 2022 production and delivery issues were “largely concentrated in China” but “have been running near capacity for several months.” Tesla does not expect significant 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 to come during its Investor Day on March 1. .

Awaiting the earnings call, investors and analysts will focus on any clues to the demand story for Tesla, and whether these steep price declines across the board are boosting first-quarter shipments. Catch Yahoo Finance’s new “After the Call” for highlights.

This story is developing. Check back for updates.

Watch Yahoo Finance

Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on instagram.

For the latest earnings reports and analysis, earnings whispers and expectations, and corporate earnings news, click here

Read the latest financial and business news from Yahoo Finance

Download the Yahoo Finance app to Apple or android

Follow Yahoo Finance on Twitter, Facebook, instagram, Flipboard, LinkedInand Youtube

Leave a Reply

Your email address will not be published. Required fields are marked *