Tesla tanks 6% on disappointing Q4 results, slower future growth
Tesla's fourth quarter revenue saw a modest 3% growth, falling short of analysts' predictions as automotive revenue only rose by 1% compared to the previous year. This news led to a nearly 6% drop in Tesla's stock during extended trading. The company also cautioned that its 2024 vehicle volume growth might be significantly lower than last year's rate as it focuses on launching its 'next-generation vehicle' in Texas.
Tesla misses revenue expectations in Q4
Adjusted earnings per share for Tesla were 71 cents, slightly below the anticipated 74 cents by London Stock Exchange Group. In volume, the company's revenue reached $25.17 billion, missing the expected $25.6 billion. Total revenue increased from $24.3 billion a year earlier. The operating margin for Q4 was 8.2%, a decrease from 16% in the same quarter last year and a slight improvement from 7.6% in Q3.
Factors contributing to Tesla's weak auto revenue
The lackluster growth in automotive revenue can be partly attributed to lower average selling prices due to significant price cuts worldwide during the latter half of the year. The quarter's net income more than doubled to $7.9 billion, up from $3.7 billion a year earlier. It is primarily because of a one-time noncash tax benefit of $5.9 billion.
