“Millions of self-driving cars could be sold at 100% profit”

“Millions of self-driving cars could be sold at 100% profit”

Tesla (DSLA) reported mixed fourth-quarter results on Wednesday, topping earnings estimates despite missing earnings shows. Tesla shares rallied on Wednesday, extending a strong rebound of more than 40% from a bear market.


After a bad 2022, Tesla’s stock fell sharply in December and the stock fell again in 2023. However, Tesla has recovered since announcing a major car price cut in China on January 6, and has continued to rise since announcing the price cut in the US and Europe. . After a week.

Tesla shares are up more than 4% after hours. Shares rose 0.4% to 144.47 during Wednesday’s session Market businessClimbing up.

Tesla’s earnings

Rating: Analysts had expected fourth-quarter earnings per share to rise 33% to $1.13. At the end of December 2022, analysts expect EPS of $1.25. Analysts had set a revenue target of 39% growth to $24.67 billion.

Sales: Tesla’s EPS jumped 40% to $1.19, while revenue jumped 37% to $24.32 billion.

For the full year, revenue rose 51% to $81.46 billion, missing estimates. Earnings per share rose 80% to $4.07, beating Wall Street expectations.

Tesla has already announced its offering In the fourth quarter, a record 405,278 were obtained. It missed forecasts on the downside despite strong year-end incentives. Vehicle shipments were up 31% from a year ago and nearly 18% from 343,830 in the third quarter. Shipments also increased by 40% to 1,313,851 in 2022. This was below the company’s 50% growth target.

Analysts had expected Tesla’s fourth-quarter shipments to be around 420,000, well below the top estimate. Tesla’s third quarter shipments were also down.

Tesla’s production was 439,701 in the fourth quarter, which increased shipments by more than 34,000 units. In the third quarter, production was over 22,000 sales. Tesla’s production was 439,701 in the fourth quarter, which increased shipments by more than 34,000 units. In the third quarter, production was over 22,000 sales.

With production ramping up at its plants in Berlin and Austin, Texas, Tesla’s production capacity is now more than 450,000 units per quarter.

Tesla’s unit sales in 2022 were 1,313,851, up 40% from 2021 but below the 50% target. The Model 3 sedan and Model Y crossover account for the majority of sales. The high-end Model S and X cars remain.

Meanwhile, the Cybertruck is expected to arrive in 2023, making it Tesla’s first new model since the introduction of the Model Y in early 2020. CEO Elon Musk says the oft-delayed truck will begin “pre-production” in mid-season. Some reports say that Cyberdrug will begin mass production in late 2023.

Tesla has also started producing its own long-distance trailers PepsiCo (PEP) in December. It’s unclear how many trailers will be released in 2023, and pricing and key specifications have yet to be revealed. According to the Nevada Independent, Tesla plans to build a $3.5 billion manufacturing plant in northern Nevada for semi-trailers.

On Wednesday, Tesla confirmed that manufacturing and supply challenges in 2022 are “largely concentrated in China.”

Tesla expects to increase its production rate “as quickly as possible” at a 50% annual growth rate (CAGR). That goal begins in 2021. In 2023, Tesla expects to deliver about 1.8 million vehicles, up 37 percent from 2022.

The EV Cybertruck company also said it is “on track to begin production later this year.”

The company added that its next-generation vehicle platform is under development and more details will be shared during an investor call on March 1, 2023.

Tesla shares: gains come after price cut

Tesla’s fourth quarter earnings follow a record from Tesla China EV Bounce for a week January 5-16 after the recent big price reduction. The latest registration numbers appear to show some of the benefits of Tesla’s Jan. 6 decision to cut prices in China.

Tesla has slashed the prices of the Model 3 and Y in China, with the base Model 3 slashed by more than 13% to $33,570. Media reports in China have been pointing the finger at Tesla Received 30,000 orders in three days According to CnEVPost, the reduction of advertising.

Tesla also announced Price reductions in the US and Europe. This will make the structures eligible for $7,500 in tax credits under the Inflationary Reduction Act (IRA).

The EV giant has cut Model 3 prices in the US by 6%-14%, depending on the trim. The standard Model 3 RWD trim is reduced by $3,000 to $43,990. For the IRA tax credit applied to a car, consumers who meet the income limit will pay $36,240.

The Model 3 Performance trim was down $9,000 to $53,990, which is within the maximum $55,000 tax credit limit. Meanwhile, Tesla’s Model Y base was cut by $13,000, or nearly 20%, to $52,990 and less than the tax credit limit. The performance variant of the car is $56,990 and has been reduced by $13,000.

Musk told investors Wednesday that so far in January Tesla has “seen the strongest orders we’ve ever seen in our history.” Tesla’s CEO said orders are currently coming in at “double the production rate,” resulting in higher Model Y prices.

“I think there are a lot of people who want to buy a Tesla but can’t afford it. So this price change makes a difference for the average consumer,” Musk said.

“At Tesla, our goal has always been to make cars accessible to as many people as possible, so I’m glad we were able to do that,” he added.

Autonomous driving mode

During Wednesday’s earnings call, Musk said Tesla has launched a full beta version of autonomous driving (FST) for city streets to about 400,000 customers in North America.

According to Musk, the EV company is currently at 100 million FSD miles, excluding highway driving.

“We wouldn’t have released the FSD beta if the safety statistics weren’t good,” Musk said.

Self-driving software can now be loaded into all Tesla vehicles, Tesla’s CEO said.

“That means there are millions of self-driving cars that could be sold at 100% of the total range,” Musk said. “The value of the FSD grows as the autonomous capability grows, and then when it’s fully autonomous, it’s an increase in the value of the fleet, the greatest increase in the asset value of anything in history.”

Tesla shares

Tesla shares are up 43% from a low of 101.81 on January 6, hitting their 50-day and 10-week lines.

While many analysts have valued Tesla stock, Lower price targets and revenue estimates.

TSLA shares are in third place An industrial group of car manufacturers. There are 46 of them in Tesla stock Collaborative assessment At 99. The stock has a Relative Strength rating of 5 IBD stock premium A measure of stock price movement. The EPS rating is 75.

Follow Kit Norton on Twitter @kidnorton For more security.

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