Tesla Warns of Slower Growth as Fourth-Quarter Earnings Disappoint

• Tesla Q4 earnings and revenue missed estimates due to weak auto revenue growth; total revenue up 3% year-over-year
• Auto revenue increased just 1% from last year as lower average selling prices weighed on growth; net income more than doubled due to tax benefit
• Tesla expects notably lower vehicle volume growth in 2024 vs 2023 as it’s between major growth waves; slower Cybertruck ramp anticipated

Tesla reported lower than expected revenue and profit for the fourth quarter of 2023. The company cited weak auto revenue growth and warned of slower vehicle volume increases in 2024.

Q4 Financial Results

• Earnings per share of 71 cents adjusted vs 74 cents expected
• Revenue of $25.17 billion vs $25.6 billion expected
• Total revenue up 3% year-over-year
• Operating margin of 8.2%, down from 16.6% a year earlier

Auto Revenue Growth Slows

• Auto revenue increased just 1% from last year
• Lower average selling price after price cuts weighed on growth
• Net income more than doubled due to one-time tax benefit

2024 Volume Growth Outlook

• Vehicle volume growth in 2024 may be notably lower than 2023
• Tesla says it’s between two major growth waves right now
• Cybertruck ramp will be slower than other models

Other Details

• Delivered over 1.8 million vehicles in 2023
• Energy division revenue up 54%
• Higher labor costs from increased wages at factories
• R&D spending jumped to $1.09 billion

Conclusion

Tesla reported disappointing auto revenue growth in Q4 while profit exceeded expectations thanks to a tax boost. The company warned investors to expect slower volume expansion this year as it prepares to launch its next-generation vehicle.