According to the latest report, Tesla’s performance fell short of expectations in the fourth quarter following last year’s third quarter. It posted sales of $25.1 billion, below Wall Street’s forecast of $25.9 billion. It was also predicted that growth would not be large this year.
Tesla Q4 2023 Profit result
Tesla has recently announced its 2023 fourth quarter and annual performance. Sales in the fourth quarter of last year amounted to $25.167 billion. It increased by 3% compared to the same period last year, but fell slightly below Wall Street’s forecast of $25.9 billion.
The operating profit margin was 8.2%, a decrease of nearly half compared to the same period last year. The operating profit margin for the same period last year was 16%. Earnings per share also recorded $0.71, falling short of Wall Street expectations.
Overall sales increased, but operating profit margin fell to single digits for the first time since 2020. Tesla’s sales in 2023 are $96.773 billion, a 19% increase compared to the same period last year. Operating profit margin decreased from 16.8% in 2022 to 9.2% in 2023. Earnings per share were announced at $3.12.
The reason for the poor performance is interpreted to be the price cut of major models. As demand for electric vehicles gradually slowed, Tesla lowered the price of Model Y from $66,000 to $47,200 last year. The price of Model 3 was also reduced from $40,240 to $38,990.
In this regard, Model 3/Y accounted for 96% of total production last year. The total production volume was 1,845,985 units, of which 1,775,159 units of Model 3/Y were produced.
Tesla also announced its plans for this year and its growth outlook. Through a conference call, Tesla expressed its ambition, saying, “The growth rate in 2024 may be lower than last year, but we will strive to launch the next-generation model,” and “We will increase our market share by launching the next-generation model along with Model 3 and Model Y.”
The next-generation model is an ‘entry-level electric vehicle’. It will be produced at the Gigafactory in Nevada, with the goal of launching in the second half of 2025. Tesla CEO Elon Musk announced that he would launch an entry-level electric car priced in the $25,000 range.
