Tesla's profits and revenues are below expectations. Stocks fall after business hours
Tesla filed its fourth-quarter accounts on Wednesday, with earnings and revenue falling short of market expectations.
Tesla closed last year with profits of $14.997 million (13.7956 million euros at current exchange rates), up 19% from the $12.556 million recorded in 2022, the North American electric car manufacturer revealed on Wednesday.
Revenue grew 19% to $96,773 million, while EBITDA fell 13% to $16,631 million. The EBITDA margin deteriorated by 637 percentage points to 17.2%.
In the fourth quarter, net profit reached $7,928 million, a value significantly higher than the $3,687 million recorded in the same period in 2022 – representing a growth of 115%.
However, earnings per share were 71 cents, lower than the 74 cents analysts had expected.
Revenues reached 25.167 million between October and December, a 3% growth compared to the same period in 2022, but lower than market estimates – which indicated 25.87 million. Operating margin was 8.2%, 784 points lower year-on-year.
For 2024, the company says it expects a challenging year, and highlights that growth, in terms of vehicle sales, “may be significantly lower” than that recorded in 2023, while Tesla works at its Texas factory to deliver “a new vehicle.” next generation”. The company warned investors that it is “between two waves of growth.”
On January 2, the brand revealed data on vehicle production and delivery, as it delivered 1.81 million vehicles in 2023, an increase of 38% compared to the previous year. Production also grew by 35% compared to 2022, reaching 1.85 million cars.
The Elon Musk-led company did not provide any guidance for this year, which is unusual. Analysts expect the company to sell 2.2 million cars in 2024, which, if confirmed, will lead to growth of about 20% compared to the 1.8 million cars sold in 2023.
After several years of high growth exceeding 10%, the world's most valuable automaker may be seeing that period come to an end. Slowing economic growth, declining demand for electric vehicles, and increasing competition are some of the challenges that Tesla will have to face.
During the last quarter, Tesla began selling the “Cyber Truck,” a model that takes longer to produce due to its complexity. The company indicated that it has the capacity to build more than 125,000 “cyber trucks” on an annual basis.
Investors showed their dissatisfaction with these numbers and Netflix shares lost 3.33% to $200.9 on Wall Street after business hours, after closing the regular business hours session on Wednesday down 0.63% to $207.83.
After more than doubling in value in 2023, Tesla shares continue to fall 16% in value since the beginning of the year.
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