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Tesla Sees Profit Margin Shrinks In Q4 Of 2023
Tesla presents figures that, despite the enormous success of the Model Y in 2023, still cause some disappointment among investors. The profit margin in the last three months of 2023 was lower than a year earlier. Tesla’s revenue rose 3 percent last quarter to more than $25 billion. That represents the slowest growth rate in more than three years. The lower margins are partly a result of the many price reductions that Tesla has implemented to sell more cars. Tesla also states that the production of its Cybertruck and research projects in areas such as artificial intelligence (AI) resulted in higher costs.
That is not the only reason why the stock market has reacted negatively to the figures. Tesla also expects less sales growth this year. According to the company, this is because the next generation of Teslas is also being worked on in its large factory in Texas. It is not clear exactly how many cars Tesla plans to deliver in 2024. In a statement accompanying the annual figures, the company only says that volume growth could be significantly lower’. In 2023, Tesla managed to deliver more than 1.8 million cars, 38 percent more than a year earlier.
Once a new Tesla model comes onto the market, this could boost sales even more. Eyes are on the ‘Redwood’ project. This is a compact crossover that will be positioned below the Model 3 and Model Y and may cost around €25,000. According to the latest rumors, the car will go into production in 2025. In any case, Tesla cannot benefit from this this year. Tesla CEO Elon Musk indicated last year that he wanted to sell more of this model annually than of the Model 3 and Model Y combined.
