with record profits, Tesla claims to be able to overcome recent problems

with record profits, Tesla claims to be able to overcome recent problems

Tesla saw its fourth-quarter revenue rise 37% to $24.3 billion, and its gross profit rose 59% to $3.7 billion, an all-time high.

Tesla posted a record profit in the fourth quarter and, faced with growing doubts about the strength of demand for its electric cars, is making sure that the problems are short-lived and that the orders are flowing.

The group saw its sales rise 37% during the period, to $24.3 billion, and its gross profit rose 59% to $3.7 billion, unprecedented levels. During the full year, its sales increased by 51% to 81.5 billion dollars and its net profit more than doubled, to 12.6 billion.

“We know there are questions about the immediate impact of an uncertain economic environment, especially with rising interest rates,” Tesla said in a statement.

But the company is “accustomed to the challenge”. Currently, it is “accelerating its plan to cut costs and target higher production levels”. Its limits in the car business have dropped slightly.

Some observers fear that the recession, rising interest rates, which make it more expensive to buy a car on credit, and the arrival of many competitors in the electric car market, will slow down Tesla’s progress.

1.31 million electric vehicles delivered in 2022

In 2022, the company delivered 1.31 million electric vehicles, which represents a record and a jump of 40% in one year. But it had set itself the goal of increasing its long-term output by an average of 50% per year.

On Wednesday, it was less clear on its outlook for 2023, saying it wanted to reach 1.8 million vehicles a year without specifying whether it was deliveries or production.

During the conference call, Elon Musk assured that the company can produce 2 million cars if “there are no major disruptions in supply or major problems”.

Some analysts are also concerned to see so many entrepreneurs struggling at the head of Twitter, the social network he bought at the end of October for 44 billion dollars, and without paying due attention to Tesla.

The billionaire responded to these accusations by saying that thanks to his large number of followers on the platform, “Twitter is actually a very good tool” to promote Tesla. The group’s share lost 65% in 2022, before recovering slightly since the start of the year.

To increase sales, the company has reduced its prices in recent months, first in China and then in Europe and the United States, sometimes up to 20%. A decision considered by some analysts as necessary to defend its market share, and by others as a sign of weakness.

Tesla bets on its electric truck and its pick-uk

Tesla defended its position Wednesday, saying making its cars more accessible is “essential to being a multimillion-dollar car maker.”

Customers responded well, orders since the beginning of January “have never been more important” for this period, assured Elon Musk. “We even raised the price a bit,” he added.

The manufacturer is also counting on the arrival on the market of its electric truck, the Semi, the first model of which was released in December, and in particular its Cybertruck takeover, whose production should begin “this summer” before it enters power. in 2024, said Elon Musk.

“The fact that Cybertruck is on schedule is a very positive thing,” CFRA analyst Garrett Nelson said.

For him, the combination of the recent price drop and the fact that it makes Tesla eligible for tax credits in the US will “increase demand and help reduce expectations” of competitors.

After the conference call, the move was up 4.5% in electronic trading following the close on Wall Street.