Tesla posted record profits in the fourth quarter and, with growing doubts about the strength of demand for its electric vehicles, says the difficulties are temporary and orders are flowing.
The group saw its turnover grow by 37% in the period, up to 24,300 million dollars, and its net profit by 59% to 3,700 million, levels never before reached. For the full year, its revenue jumped 51% to $81.5 billion and its net profit more than doubled to $12.6 billion.
“We know there are questions about the near-term impact of the uncertain macroeconomic environment, particularly with rising interest rates,” Tesla said in a statement.
But the company “is used to challenges.” For now, it is “accelerating its cost reduction program and targeting higher production rates.” Its margins in the automotive business have fallen slightly.
Some observers fear that the economic slowdown, rising interest rates, which make buying a car on credit more expensive, and the arrival of multiple competitors in the electric vehicle market, will slow down Tesla’s development.
1.31 million electric vehicles delivered in 2022
In 2022, the company delivered 1.31 million electric vehicles, which represents a record and a 40% jump in one year. But it had set itself the goal of increasing its long-term deliveries by an average of 50% per year.
On Wednesday, he was more vague about his outlook for 2023, saying he wanted to hit 1.8 million vehicles for the year without specifying whether it was delivery or production.
During a conference call, Elon Musk assured that the company could produce 2 million vehicles if “there are no major interruptions in the supply chain or massive problems.”
Some analysts are also concerned to see the multi-business owner fret at the helm of Twitter, the social network he bought in late October for $44 billion, and not focus as he should on Tesla.
The billionaire responded to these criticisms by saying that thanks to his large following on the platform, “Twitter is actually an incredibly effective tool” for advertising Tesla. The group’s share lost 65% in 2022, before recovering somewhat since the beginning of the year.
To boost sales, the company has lowered its prices in recent months, first in China and then in Europe and the United States, sometimes by as much as 20%. A decision considered by some analysts as necessary to defend its market share, by others as a sign of weakness.
Tesla bets on its electric truck and its pick-uk
Tesla defended its position Wednesday, saying that making its cars more affordable is “necessary to become a multibillion-dollar automaker.”
Customers reacted positively, orders since early January “had never been so important” during this period, Elon Musk said. “We even raised the prices a bit,” he added.
The manufacturer is also counting on the arrival on the market of its electric Semi truck, the first model of which was delivered in December, and especially its Cybertruck pick-up, whose production should begin “this summer” before leveling up. in 2024, said Elon Musk.
“The fact that the Cybertruck is on time is a very positive thing,” said Garrett Nelson, CFRA analyst.
For him, the combination of the recent price drop and the fact that Tesla is eligible for tax credits in the United States “will boost demand and help reduce the prospects” of competitors.
Following the conference call, the stock rose 4.5% in electronic trading after the Wall Street close.
Source: BFM TV
