electric car manufacturers Tesla It reported earnings after the bell, beating both earnings and earnings. Shares surged more than 5% hours after CEO Elon Musk said the company could produce 2 million cars this year. This is the result.
- Earnings (Adjusted): $1.19 vs $1.13 expected, according to Refinitiv
- Earnings: $24.32 billion vs. $24.16 billion forecast, according to Refinitiv
In the year-ago quarter, Tesla had revenue of $17.72 billion and adjusted earnings of $2.52 per share ($0.85 adjusted for the August 2022 stock split).
Tesla reported $21.3 billion in car sales in the fourth quarter, up 33% year over year. Of that, $467 million came from regulatory credits in Q4 2022, up nearly half year-over-year during the same period.
Automotive gross margin was 25.9%, the lowest in five quarters. Operating cash flow was $3.28 billion, down 29% from last year and down 36% from the prior quarter.
In a shareholder presentation, the company acknowledged that average selling prices have “generally trended downward over the years,” and that for Tesla to grow into a company that sells millions of cars a year, it needs to be “affordable.” price,” he said.
In late 2022 and into this year, Tesla cut prices on cars around the world, upsetting US and Chinese customers who recently bought high-priced new Teslas, and an immediate drop in used Tesla prices in the US as well.
But the price cuts seem to have ignited demand. In a conference call with shareholders and analysts on Wednesday, CEO Elon Musk said: of production. ”
An analyst asked Musk why Tesla’s production forecast for 2023 is just 1.8 million vehicles, even as it ramps up production at its new factories.
“I’m saying 1.8 because there always seems to be an extreme force majeure happening somewhere on the planet. You can’t control whether there’s an earthquake, tsunami, war, pandemic, etc. If we have a good year, barring major supply chain disruptions and major issues, we might be able to produce 2 million cars this year, and I think there’s demand for that as well.”
The company did not provide new guidance, but reiterated it in its earnings call.
Shareholders are asking how Musk will protect Tesla’s brand and reputation from any backlash stemming from his political statements and new job as CEO of Twitter, the social media company it acquired in October 2022. I asked if there were any plans. How to connect with your customers:
“I have 127 million followers, and it continues to grow rapidly. This shows that I am reasonably popular. Some people are not Maybe, but for most people, the number of followers speaks for itself. [I have one of] Probably the most interactive account, the social media account in the world, is arguably Twitter, which actually predates the acquisition. So Twitter is actually a very powerful tool for driving demand for Tesla. And I would strongly encourage any kind of automotive or other business to get more out of Twitter and use their Twitter account in interesting, informative, and entertaining ways. It’s helpful.
Other revenue details
Tesla’s service and other revenue, which includes out-of-warranty vehicle repairs and other expenses, reached $1.6 billion in the fourth quarter.
Revenues from energy generation and storage increased quarter-over-quarter and year-over-year to $1.31 billion. However, the cost of revenue in the energy sector is high, and he had $1.15 billion in the fourth quarter.
Tesla said it has installed capacity at all its factories to make 100,000 Model S and Model X and 1.8 million Model Y and Model 3 annually.
Shanghai’s capacity will allow Tesla to make 750,000 Model 3 and Model Y electric vehicles annually, the company reports, but the first factory in Fremont, Calif. will produce the more expensive Model S and Model X. 100,000 of the model and 550,000 of the model. Car No. 3 and Car Y. The company says its factories near Austin, Texas and Berlin, Germany each have the capacity to make 250,000 Model Ys a year.
Tesla also said about 400,000 customers in North America are now able to test its experimental “FSD Beta” driver assistance system. In a shareholder presentation, the company said it recognized deferred revenue of $324 million in the quarter related to FSD.
This driver assistance system is only available to customers who have purchased or subscribed to Tesla’s Premium Driver Assistance Package (sold as FSD or Fully Self-Driving Feature). Tesla doesn’t make self-driving cars or driver assistance systems that are safe to use when the driver isn’t behind the wheel and always have the steering wheel and brakes ready. FSD Beta contains new software features that the company has not fully debugged yet.
The company also reiterated that the Cybertruck pickup will begin production in Texas this year, but won’t go into mass production until next year.
