Tesla Q4 2023 Earnings: Revenue Soars, But Margins Squeeze
Missed Analyst Expectations
Key Highlights
Tesla reported total revenues of $24 billion and non-GAAP EPS of $0.71 for Q4 2023, missing analyst expectations. This represents a 19% increase in revenue compared to the previous year, but a decline in net income and EPS. Tesla's operating margin also dropped to 9.6% in Q4, compared to 12.5% in the same quarter last year.
Despite the mixed results, Tesla's revenue growth was primarily driven by an increase in vehicle deliveries, particularly the Model Y and Model 3. Tesla delivered a record number of vehicles in Q4, with total deliveries reaching over 405,000 units.
The company's profitability was affected by a number of factors, including rising input costs, increased competition, and challenges in ramping up production at its new manufacturing facilities. Additionally, Tesla faced headwinds from foreign currency exchange rate fluctuations and increased expenses related to its energy storage and solar businesses.
Tesla's stock price fell by about 5% in after-hours trading following the earnings release. Investors will be closely watching the company's upcoming Q1 2023 earnings report for further insights into its financial performance and outlook.
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