Electric car maker: Tesla breaks records – Musk expects “recession”

Electric car maker: Tesla breaks records – Musk expects “recession”

electric car builders
Tesla breaks records – Musk expects “recession”

Tesla plans to further expand production in 2023. image

© Christophe Gateau/dpa

E-car pioneer Tesla has once again set new profit and sales records. Elon Musk expects a recession, but is confident about Tesla.

Despite high inflation, economic worries and supply chain problems, Tesla earned more in 2022 than ever before in a fiscal year. The electric car group from the star entrepreneur Elon Musk increased its profit by 128 percent compared to the previous year to 12.6 billion dollars (11.5 billion euros), as Tesla announced after the US stock market closed. That revenue grew accordingly by 51 percent to $81.5 billion. “It’s been a great year, the best year yet,” Musk said while presenting the numbers.

But what about 2023? “We’re probably going to have a really tough recession,” Musk warned. Should this happen, however, Tesla’s material costs should also drop significantly. Either way, the outlook is bleak – without an economic slowdown, central banks could continue to raise interest rates, making car purchases more difficult. Management knows there are questions about the “uncertain economic environment,” Tesla said in its letter to shareholders. However, the market leader in the electric car segment has set big goals for this year.

Tesla wants to ramp up production “as soon as possible” in 2023 and sees itself on track to produce around 1.8 million vehicles a year. He sees a real potential of two million, Musk explained. But some external factors cannot affect Tesla. The group confirmed that it will continue to target annual growth of 50 percent in the longer term. But Tesla missed this goal as early as 2022 – shipments increased by 40 percent to 1.3 million electric cars. In the three months to the end of December, they grew by only 31 percent compared to the previous year.

The group prepares for rapid growth

Recently, the company’s price cuts have raised more concerns among investors about the possibility of reduced demand and lower profit margins. Other owners of older Teslas were also upset because of the drop in scrap values ​​of their cars. However, Musk defended the reduction in a web conference with analysts and investors – it was always Tesla’s goal to make electric cars affordable for the general public. He also firmly dismissed concerns about demand – orders are currently growing faster than Tesla’s production.

The group continues to set itself up for rapid growth – production capacity is expected to double by 2022. Musk is planning more models, including the long-awaited Cybertruck, which is set to begin production this year, and Tesla is opening up the lucrative commercial truck market. take America’s. The company blamed conditions in China for production and delivery problems last year, where the Covid-19 lockdown put a major strain on a large plant in Shanghai.

Musk angered investors with the Twitter purchase

In the fourth quarter, Tesla increased net income by 59 percent year over year to $3.7 billion. Revenue increased 37 percent to $24.3 billion. The company thus achieved a new record at the end of the year. The data exceeded analysts’ expectations – by a large margin in terms of net income and by a small margin in terms of earnings. Investors initially reacted cautiously, but Musk’s statements during the conference call ultimately lifted the stock significantly after the trading day.

Tesla had a tough time on the stock market last year. The stock price plunged nearly 65 percent in 2022, but has recently rebounded. Elon Musk’s escape from the controversial takeover of the online platform Twitter and his sale of Tesla stock to raise about $44 billion was poorly received by investors. There have already been complaints from influential major shareholders that the tech billionaire – who also runs space and rocket company SpaceX – is neglecting Tesla too much.