Connect with us

Hi, what are you looking for?

Business

Tesla reports record profits, confirms long-term outlook

Tesla reported another round of record quarterly profits while confirming its long-term growth outlook.

Elon Musk tweet "Danke Deutschland!" (Thank you, Germany) after inaugurating Tesla's first production site in Europe - Copyright AFP/File Hector RETAMAL
Elon Musk tweet "Danke Deutschland!" (Thank you, Germany) after inaugurating Tesla's first production site in Europe - Copyright AFP/File Hector RETAMAL

Tesla reported another round of record quarterly profits Wednesday while confirming its long-term growth outlook in spite of concerns about rising competition and macroeconomic headwinds.

Elon Musk’s electric vehicle (EV) company reported fourth-quarter profits of $3.7 billion, up 59 percent from the year-ago period as revenues jumped 37 percent to $24.3 billion.

The results were fueled by a 31 percent rise in vehicle deliveries compared with the year-ago period.

The EV giant, which startled investors earlier this month by announcing vehicle price cuts in the United States and Europe, acknowledged challenges such as rising interest rates and an “uncertain macroeconomic environment.”

Tesla is the undisputed leader in the electric vehicle sector, but its rivals are trying to catch up – Copyright POOL/AFP FETHI BELAID

Tesla’s response includes “accelerating our cost reduction roadmap and driving towards higher production rates,” the company said in its earnings release.

“In any scenario, we are prepared for short-term uncertainty,” said Tesla, while adding that its “relentless cost control and cost innovation” positions it to navigate the year 2023 better than rivals.

The company has described its long-term buildup as seeking to chalk up production growth of 50 percent per year, with some years faster and some years slower.

Tesla employed similar language in its earnings release Wednesday, but said it would reach 1.8 million vehicles in 2023, about 31 percent above the 2022 production of around 1.4 million vehicles and 37 percent above the 2022 deliveries of 1.3 million.

However, Tesla said the 2023 projection of 1.8 million vehicles as “ahead of its long-term” target, raising questions about the figure.

Tesla CEO Elon Musk (C) is shown on January 24, 2023 entering a California courthouse where he testified at a trial over his August 2018 tweets saying he was taking Tesla private

Tesla CEO Elon Musk (C) is shown on January 24, 2023 entering a California courthouse where he testified at a trial over his August 2018 tweets saying he was taking Tesla private – Copyright AFP SEBASTIEN BOZON

Shares of Tesla have fallen about 50 percent from their year-ago level, reflecting worries about the introduction of EVs from other automakers, the drag from a slowing economy and anxiety that Musk’s other pursuits such as Twitter are hindering the company.

Musk’s $44 billion acquisition of Twitter was just one of the myriad controversies surrounding the unpredictable billionaire.

The Tesla chief has been in court this week addressing another thorny matter, a lawsuit filed by investors who argue that Musk’s statements in 2018 about potentially taking Tesla private were fraudulent and responsible for their losses.

Musk testified this week that a tweet about taking Tesla private at $420 a share was no joke and that Saudi Arabia’s sovereign wealth fund was serious about helping him do it.

Shares of Tesla rose 0.7 percent to $145.50 in after-hours trading.

AFP
Written By

With 2,400 staff representing 100 different nationalities, AFP covers the world as a leading global news agency. AFP provides fast, comprehensive and verified coverage of the issues affecting our daily lives.

You may also like:

Tech & Science

Incredibly, at Microsoft, a configuration change caused a widespread outage.

Business

The EU has already committed to invest hundreds of billions of euros in green tech including solar panels - Copyright AFP/File Kazuhiro NOGIDaniel AronssohnThe...

Business

GDPR was significant, not because it was a unifying act that enshrined the rights of people and their digital identities to govern how their...

Business

The Boeing 747 "opened up the world," analysts have said - Copyright AFP Patrick T. FallonJuliette MICHELBoeing is set to officially bid farewell to...