Tesla registered its first annual profit decline since 2017 last year, the company disclosed in its fourth-quarter and full-year earnings report Wednesday afternoon, sending its stock sliding as Elon Musk’s electric vehicle goliath grapples with shrinking margins as it expands output.
Key Takeaways
- Tesla reported earnings per share of $3.12 for 2023, a 23% decline from 2023’s record $4.07; the company’s $16.6 billion in adjusted earnings before interest, taxes, depreciation and amortization was 13% lower than 2022’s $19.2 billion adjusted EBITDA.
- Though the bottom line showed weakness, Tesla’s top line was stronger than ever, as its $96.8 billion in 2023 revenue was 19% higher than last year’s prior record.
- For the fourth quarter, Tesla reported $25.2 billion of sales and $0.71 earnings per share, missing average analyst estimates of $25.6 billion and $0.73, according to FactSet.
- Shares of Tesla tanked 5% immediately after the earnings report’s release, continuing the company’s 16% decline in 2024; shares fetched their lowest price since October in low volume Wednesday afternoon trading.
- Tesla’s profits fell 40% last quarter compared to the final period of 2022, while revenue grew a more modest 3% year-over-year.The slide in profits came as Tesla initiated a series of price cuts on its cars, sending profit margins down significantly, as its 17.6% gross margin during Q4 was its lowest mark since 2019, down more than 600 basis points from last year.
www.forbes.com.au/news/investing/tesla-profits-declined-23-in-2023/
Tesla misses fourth-quarter estimates on weak auto revenue, warns of lower volume growth in 2024
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