Millions of fully self-driving cars could be sold at 100% gross margin.

Millions of fully self-driving cars could be sold at 100% gross margin.
Millions of fully self-driving cars could be sold at 100% gross margin.

Tesla (d) reported mixed fourth-quarter results on Wednesday, beating earnings estimates despite a lack of views on revenue. Tesla shares soared on Wednesday, extending a robust rebound of more than 40% from a bear market.


After a terrible 2022, Tesla shares fell sharply in December, and shares fell again in 2023. However, Tesla has climbed since the announcement of major car price cuts in China on January 6, and has continued to rise since the announcement of price cuts in the United States. United and Europe. after a week.

Tesla shares rose more than 4% after hours. Shares rose 0.4% to 144.47 during Wednesday’s session, trading the market higher.

Tesla earnings

Ratings: Analysts had expected earnings per share in the fourth quarter to rise 33% to $1.13. At the end of December 2022, analysts expected earnings per share of $1.25. Analysts had set a revenue target of 39% to $24.67 billion.

he won: Tesla’s EPS jumped 40% to $1.19, while revenue rose 37% to $24.32 billion.

For the full year, revenue rose 51% to $81.46 billion, below estimates. Earnings per share rose 80% to $4.07, beating Wall Street expectations.

Tesla has already announced that deliveries reached a record high of 405,278 in the fourth quarter. It missed lowered expectations despite strong year-end stimulus. Vehicle deliveries were up 31% from a year ago and about 18% versus 343,830 in the third quarter. Deliveries also increased by 40% to 1,313,851 in 2022. This was well below the company’s 50% growth target.

Analysts expected Tesla deliveries in the fourth quarter of the year to be around 420,000, down significantly from higher estimates. Tesla sales also declined in the third quarter of the year.

Tesla produced 439,701 in the fourth quarter, surpassing deliveries by more than 34,000. In the third quarter, Issuance exceeded sales by more than 22,000. Tesla produced 439,701 in the fourth quarter, surpassing deliveries by more than 34,000. In the third quarter, Issuance exceeded sales by more than 22,000.

With increased production at the company’s factories in Berlin and Austin, Texas, Tesla’s total production capacity is now over 450,000 for the quarter.

Tesla unit sales in 2022 were 1,313,851, up 40% versus 2021 but below the 50% target. The Model 3 sedan and the Model Y crossover accounted for the majority of sales. The higher-end Model S and X sedans remain.

Meanwhile, the Cybertruck is scheduled to arrive in 2023, making it Tesla’s first new model since the Model Y was introduced in early 2020. CEO Elon Musk says the often-delayed truck will begin “initial production” in the middle of the season. Other reports claim that Cyberdrug will begin mass production in late 2023.

Tesla is beginning to receive its long-haul trucks PepsiCo (PEP) in December. It’s unclear how many semi-trucks will be produced in 2023, and pricing and key specifications remain unclear. According to the Nevada Independent, Tesla plans to build a $3.5 billion manufacturing facility in northern Nevada for semi-trailer trucks.

On Wednesday, Tesla emphasized that its manufacturing and supply challenges throughout 2022 are “largely centered in China.”

Tesla plans to increase its production volume “as fast as it can” at a compound annual growth rate (CAGR) of 50%. This goal begins in 2021. In 2023, Tesla expects to produce about 1.8 million vehicles, an increase of 37% compared to 2022.

The Cybertruck EV also said it is “on track to start production later this year.”

The company added that its next-generation vehicle platform is under development and more details will be shared at its Investor Day on March 1, 2023.

Tesla stock: profits come after price cut

Tesla’s fourth-quarter earnings follow Tesla China EV records rebounding during the week of January 5-16 after recent deep price cuts. The latest registration numbers appear to reflect some of the benefits of Tesla’s January 6 decision to cut prices in China.

Tesla slashed prices for the Model 3 and Y in China, with the base Model 3 slashed by more than 13%, to $33,570. Local media reports in China suggested that Tesla received 30,000 orders in three days, according to CnEVPost, the announced cuts.

Tesla also announced price cuts in the United States and Europe. This will make the forms eligible for $7,500 in tax credits under the Inflation Reduction Act (IRA).


The EV giant has slashed prices for the American Model 3 by 6%-14%, depending on trim. The standard 3 RWD trim is reduced by $3,000 to $43,990. With the vehicle IRA tax credit applied, consumers who meet the income limits would pay $36,240.


The Performance Model 3 dropped from $9,000 to $53,990, which is just under the $55,000 threshold for tax credits. Meanwhile, Tesla’s base Model Y was slashed by $13,000, or nearly 20%, to $52,990 and below the tax credit limit. That car’s performance variant is $56,990 and lowered by $13,000.

Musk told investors on Wednesday that so far in January, Tesla has seen “the strongest orders we’ve seen in our history.” The Tesla CEO said orders are now coming in “at twice the rate of production,” which has pushed up Model Y prices.

“I think there are a lot of people who want to buy a Tesla but can’t afford it,” Musk said. So these price changes make a real difference to the average consumer.”

He added, “Our goal at Tesla has always been to make cars accessible to as many people as possible, so I’m glad we were able to do that.”

Self-driving mode

During the earnings call on Wednesday, Musk said Tesla has deployed its full self-driving (FST) beta on city streets to about 400,000 customers in North America.

According to Musk, the EV is currently at 100 million miles FSD, not including highway driving.

“We wouldn’t have launched the FSD beta if the security stats weren’t so great,” Musk said.

The Tesla CEO said that self-driving software can now be loaded into all Tesla cars.

“That means there are millions of self-driving cars that can be sold in 100% total range,” Musk said. “The value of the FSD grows as the autonomous capacity grows, and then when it becomes fully autonomous, it’s an increase in the value of the fleet, which is the largest increase in the value of assets of anything in history.”

Tesla stock

Tesla shares are up 43% from a low of 101.81 on Jan. 6, hitting the 50-day and 10-week lines.

While many analysts weighed in on Tesla shares, they cut price targets and revenue estimates.

TSLA shares occupy the third place in the automaker’s group. There are 46 Tesla shares with a Cooperative rating of 99. The stock has a relative strength rating of 5. IBD stock pullback is a measure of share price movement. The EPS rating is 75.

Follow Kit Norton on Twitter @employee For more security.

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