The electric vehicle maker generated $25.17 billion in revenue versus the $25.6 billion analysts expected, mainly due to the competitive automotive market.
Tesla‘s stock is down nearly 1% in after-hours trading after it narrowly missed revenue projections for the fourth quarter of 2023 in its most recent earnings report.
The electric vehicle maker generated $25.17 billion in revenue versus the $25.6 billion analysts expected. Still, Tesla’s Q4 revenue increased 3% year-over-year. The company didn’t see much growth across auto revenue, the primary area of its business. Elsewhere, Tesla’s net income more than doubled to $7.9 billion for the quarter compared to the $3.7 billion the company brought in a year ago.
Tesla’s shares have been on the decline since the start of 2024, with the company’s stock falling an estimated 16% this month.
Subscribe for the biggest stories in the business of sports and entertainment, daily.
Overall, Tesla’s automotive revenue for 2023 came in at $82.42 billion, a 15% increase year-over-year. Tesla told investors that it expects to ramp up production on Cybertrucks this year, so we may see a flood of the new vehicles on the roads soon. The EV company reported that it has the capacity to make more than 125,000 Cybertrucks in 2024.
On a good note, Tesla’s energy division saw a 54% bump in revenue to $6.04 billion. In Q4 specifically, Tesla generated $21.56 billion in automotive revenue. However, execs suggested that there will be a significant decrease in the increase of the number of Teslas on the road in 2024. This is due to reallocated efforts to design new models of the coveted EVs.
Tesla attributed its overall declining profits to the reduced average sales price of its vehicles and higher operating expenses. Despite that, Tesla says it has “sufficient liquidity” to fund its product roadmap, expansion plans, and other expenses. The company also recently implemented some pay increases for its hourly factory employees in the U.S. to combat rising labor costs and compete with big automakers like General Motors and Ford.
Read More:
