Tesla’s Quarterly Earnings Fell Short Of Projections

Tesla reported that fourth-quarter earnings and revenue fell below analysts’ predictions. Here’s how the company compared to estimates:

– Earnings per share: 73 cents (adjusted) compared to 76 cents expected.

– Revenue: $25.71 billion versus the anticipated $27.26 billion.

Tesla’s revenue increased by just 2%, up from $25.17 billion a year ago. Automotive revenue dropped 8%, falling to $19.8 billion from $21.56 billion in the same quarter last year, with $692 million attributed to regulatory credits. Operating income plummeted 23% year-over-year, totalling $1.6 billion.

The company attributed the decline primarily to lower average selling prices for its Model 3 and Y, as well as its S and X models. Net income fell by 71% from the previous year, amounting to $2.32 billion, or 66 cents per share, compared to $7.93 billion, or $2.27 per share. The previous year’s net income was inflated by a one-time, non-cash tax benefit of $5.9 billion.

The operating margin for the quarter stood at 6.2%, down from 8.2% during the same period last year and 10.8% from the previous quarter.

In early January, Tesla announced fourth-quarter vehicle deliveries of 495,570. For the entire year, deliveries totalled approximately 1.8 million, representing the company’s first annual decrease. Deliveries serve as the best estimate of sales that Tesla has provided, yet they are not detailed in the company’s communications to shareholders.

Tesla has introduced several vehicle inventory discounts and special offers for North American customers referred by another Tesla owner, valid through the end of 2024. In China, Tesla reduced prices on its popular Model Y SUV in anticipation of the launch of an updated version, known as the Model Y Juniper.

• Also See: Tesla Is Losing German Businesses As A Result Of Musk’s Actions