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Tesla CEO Elon Musk told shareholders and analysts that the company had record orders in January.
EV maker Tesla (NASDAQ: TSLA) exceeded analysts’ expectations on revenue and earnings in Q4 2022. The company released its fourth-quarter earnings for the past year, noting that revenue came in at $24.32 billion, higher than analysts’ projection of $24.16 billion. At the same time, adjusted earnings per share for the quarter were $1.19 instead of the expected $1.13 per share. Tesla performed significantly better in Q4 2022 on revenue compared to the same quarter in the previous year. Revenue in the year-ago quarter was $17.72 billion.
Reporting more of its performance drawing Q4 of 2022, Tesla revealed automotive revenue as $21.3 billion. This represents a 33% jump YoY. Meanwhile, regulatory credits account for $467 million of the total automotive revenue. The company also recorded the lowest figure for automotive gross margin in the last five quarters at 25.9%.
According to Tesla, average sales prices have decreased over the past years. The company acknowledged that “affordability” is required to trigger an increase in car deliveries. Hence, it announced a price cut on it across the globe. I lowered the sales price of its Model 3 compact sedan and Model Y compact SUV. The cost slashes implemented in late 2022 sparked some reactions among US and China consumers who got their EVs shortly before the announcement. Even though there was an instant fall in Tesla’s share price as American and Chinese consumers were upset, the price-cut strategy seemed to work for the company.
Tesla CEO Elon Musk told shareholders and analysts that the company had record orders in January. The billionaire explained that Tesla saw its strongest orders YTD than ever in its history this month. Musk added that the orders are almost X2 of the automaker’s production rate. Despite making a record and surpassing expectations in Q4 2022, Tesla plans to produce just 1.8 million vehicles this year. In response to an analyst who asked the reason for the decision, even as the manufacturer is ramping up production at its new factories, the businessman said:
“We’re saying 1.8 because there always seems to be some friggin’ force majeure thing that happens somewhere on Earth. We don’t control if there’s earthquakes, tsunamis, wars, pandemics, etc. If it’s a smooth year, without some big supply chain interruption or massive problem we have the potential to do 2 million cars this year. I think there would be demand for that, too.”
Furthermore, he acknowledged that Twitter is a potent tool to promote Twitter and drive demand.
At an after-hours trading price of $152.35, Tesla stock is up 5.48%. The company has gained more than 17% since the year started and added another 28.14% over the past month. In the last five days, TSLA has jumped 12.15%.