Tesla, the electric vehicle giant, faces headwinds as it misses fourth-quarter estimates, reporting weaker-than-expected auto revenue. Despite a 3% growth in total revenue, automotive revenue saw a mere 1% increase from the previous year. The company warns of potentially lower vehicle volume growth in 2024, signaling a cautious outlook for the year ahead.
Key financial figures highlight the challenges, with earnings per share at 71 cents (adjusted) falling short of the expected 74 cents. Revenue amounted to $25.17 billion, below the expected $25.6 billion. The operating margin for the quarter stood at 8.2%, down from the year-ago figure of 16%, reflecting the impact of reduced average selling prices following global price cuts.
While net income for the quarter more than doubled to $7.9 billion, the increase was primarily due to a significant one-time noncash tax benefit of $5.9 billion. Tesla’s investor presentation underscores the anticipation of lower vehicle volume growth in 2024 as the company gears up for the launch of its “next-generation vehicle” in Texas, emphasizing its current position between two major growth waves.
Source:
www.cnbc.com/2024/01/24/tesla-tsla-earnings-q4-2023.html