Tesla posts record profits of .6 billion in 2022

Tesla posts record profits of $12.6 billion in 2022

New York Tesla earned more in 2022 than ever before in the fiscal year. Elon Musk’s electric car maker boosted profits 128 percent year-over-year to $12.6 billion. Tesla announced this on Wednesday evening (local time). Sales grew 51 percent to $81.5 billion.

Tesla wants to “expand production as quickly as possible” in 2023 and plans to produce cars more than 50 percent annually. However, revenue and sales in the last quarter ($3.7 billion and $24.3 billion) remained slightly below Wall Street expectations.

In 2022, Tesla missed its 50 percent growth target. The group delivered nearly 1.3 million vehicles, an increase of 40 percent. Since then, Wall Street has been concerned that Tesla is hitting the ceiling after years of rapid growth. Recent price cuts have fueled concerns that demand for Tesla’s vehicles may be slowing.

Tesla lost nearly $675 billion in market capitalization last year. The course collapsed by 65 percent – a record low. Since the beginning of the year, however, the stock has recovered somewhat and is up by a third. Investors also reacted cautiously to the latest data on Wednesday: the stock gained nearly one percent in after-hours trading.

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“2022 was a good year for Tesla,” Musk said at the analyst conference. It has achieved an operating profit of almost 17 percent, more than any other car manufacturer. This is a good result – especially against the background of several lockdowns in China, high inflation, economic worries and supply chain problems.

Uncertain economic environment

Musk faced concerns that demand for Tesla cars could fall, especially in China: demand outstrips production by a factor of two, he explained.

At the same time, Tesla admitted that the uncertain economic environment was driving the group: “In the short term, we are accelerating our plan to reduce costs and we are aiming for higher levels of production.” Musk stressed that the car market is expected to slow down. 2023, but I feel ready for a recession – also thanks to a $20 billion cash inventory.

In recent weeks, Tesla has tried to increase demand by reducing the price of its cars by up to 20 percent. This was also done to benefit from new subsidies from the climate packages of the American President Joe Biden. Musk stressed on Wednesday evening that the price reduction is also about the “ability” of their cars to large groups of buyers.

Musk reported progress while ramping up production at new locations in Berlin and Austin, where there were clear bottlenecks in 2022. Production costs have dropped significantly in both locations. Tesla has also increased battery production.

Vague statements on the topic of the problem

Musk briefly commented on the group’s three major construction areas. On the subject of automated testing, he explained that 400,000 customers are using the “Self-Driving Beta”, the most advanced version. 100 million miles already driven on it. Customers would get the most comprehensive testing system on the market. Safety figures are also “excellent,” Musk said.

Recently, several accidents related to the use of Tesla Autopilot made headlines. The US traffic regulator NHTSA and other authorities are looking at the system seriously.

Crucial to Tesla’s future is the launch of the Cybertruck, a pick-up that should take the place of America’s most popular car. Introduced in 2019, the market launch was further delayed. The start of production was last expected for 2023. In the conference call, Musk admitted that the truck will not be important for Tesla in 2023 either – “but next year.” The Cybertruck is an “amazing product,” Musk said. “I will drive the Cybertruck every day.”

From an investor’s point of view, Musk’s new promise of 2024 is bad news. ford For a year now, it has been reporting consistent sales records with its Electric Power takeover. Also Silverado from GM is in great demand. At the beginning of the year, the third number of traditional producers, Stellantisan electric version of its RAM-carrying car.

Musk’s evasion surrounding the controversial takeover of the text messaging service was also a topic Twitter. “Twitter is very powerful in driving demand,” Musk argued. The real benefit of Twitter is great, he said without going into detail.

The management of Twitter has been consuming a large part of Musk’s time since the fall of 2022. Investors were also upset by the sale of Tesla’s stock to finance deals worth about $ 44 billion.

Tesla Named “World’s Most Valuable Company”

Tesla continues to work in tandem to produce an electric semi-truck. On December 1 they had the first Tesla Semi on PepsiCo hand over The largest food company in the United States ordered 100 electric trucks from Tesla in 2017.

Musk promised that Tesla would once again be “the most valuable company in the world” in the future. The group is at least as much a software as a hardware company. “We’re getting close to realizing the real-world application of artificial intelligence.”

Tesla aims to sell around 20 million vehicles by 2030, a number that would make the group the world’s largest car maker. There are doubts in the industry that this goal can be achieved. Toyota and Volkswagen currently coming to the annual production of ten million cars – and that in several dozen factories around the world. According to Musk, Tesla would need several factories to reach the goal.

It was only on Tuesday that the billionaire announced plans to invest more than 3.6 billion dollars in two new gigafactories in Nevada. Electric trucks and batteries will be produced there.

Sounded muted, Musk remained optimistic about the future Wednesday night. In a few years, the Chinese competitor could become the world’s second largest carmaker – arguably after Tesla.

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