Tesla reports record profits, confirms growth plan
TESLA reported another round of record quarterly profits on 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 US$3.7 billion, up 59 per cent from the year-ago period as revenues jumped 37 per cent to US$24.3 billion.
The results were fueled by a 31 per cent 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’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 better navigate the year 2023 compared with rivals.
Shares of Tesla have fallen about 50 per cent from their year-ago level, reflecting worries about the arrival of rival EVs from other automakers, the drag from a slowing economy and anxiety that Musk’s other pursuits such as Twitter are hindering the company.
Shares of Tesla dipped 0.2 per cent to US$144.14 in after-hours trading. AFP
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