Tesla’s Q4 2023 Earnings Report: 17 Consecutive Profitable Quarters Despite Falling Short of Expectations

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Tesla, the electric vehicle (EV) powerhouse, has unveiled its Q4 2023 earnings report, encapsulating the entire fiscal year. While the company continued its remarkable streak of profitability for the 17th consecutive quarter, it fell short of analysts’ expectations in terms of both profit per share and revenue. The report sheds light on the impact of the aggressive price cuts witnessed in the previous year, particularly on the Model 3 and Model Y, which proved highly effective in boosting sales but exerted pressure on the company’s bottom line.

The key financial highlights from Tesla’s Q4 2023 report include:

  • $25.167 billion in revenue
  • $0.71 profit per share (Non-GAAP)

Analysts’ expectations, on the other hand, were slightly higher, anticipating a profit per share in the range of $0.73 to $0.74 and revenue in the range of approximately $25.598 to $25.640 billion.

Tesla provided additional insights in its report:

  • Free cash flow remained robust at $4.4 billion in 2023, despite substantial investments in growth projects, marking the highest capital expenditures and research and development expenses in the company’s history.
  • The gross profit of Tesla’s Services & Other business experienced a significant turnaround, shifting from a loss of approximately $500 million in 2019 to a profit of approximately $500 million in 2023.
  • Cost of goods sold per vehicle showed a sequential decline in Q4.

In terms of revenue and profitability, Tesla reported:

  • Total revenue grew by 3% YoY in Q4, reaching $25.2 billion.
  • Operating income decreased YoY to $2.1 billion in Q4, resulting in an 8.2% operating margin.

Turning to production and deliveries for Q4 2023, Tesla achieved the following milestones:

  • Delivered a total of 484,507 cars, with the Model 3 and Model Y contributing significantly, accounting for 461,538 deliveries.
  • Combined Model S and Model X deliveries reached approximately 22,969, excluding some Cybertruck deliveries.

On the production front, Tesla manufactured a combined total of 494,989 vehicles in Q4 2023.

Zooming out to the entire year of 2023, Tesla delivered 1,808,581 cars and produced 1,845,985 vehicles. Once again, the Model 3 and Model Y played a dominant role in both figures, showcasing the sustained popularity of Tesla’s mass-market offerings.

As Tesla navigates the dynamic landscape of the EV market, its focus on innovation, production efficiency, and sustained profitability remains a key narrative for investors and enthusiasts alike.

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