7:44 am, January 26, 2023
Tesla has put recent struggles aside to announce a 59 per cent rise in profits for the last quarter.
The EV firm has attracted a string of negative headlines in recent times with the price of its cars plummeting at an alarming rate, sparking fears that demand has fallen.
However in news that is likely to reassure twitchy investors, the company has now reported record net income in the fourth quarter of last year.
Boss Elon Musk also says that additional software-related profits will keep Tesla’s margins higher than any other carmaker.
The firm made an impressive $3.69bn (£2.97bn) from October through to December, or an adjusted $1.19 per share.
That beat estimates of $1.13 that had been reduced by analysts and placed the company’s profits 59 per cent higher than the same period in 2021.
Revenue for the quarter was $24.32bn (£19.61bn), which fell short of the $24.67bn (£19.89bn) that analysts had predicted.
Meanwhile, the company’s automotive gross profit margin fell from 30.6 per cent in the fourth quarter of 2021 to 25.9 per cent in the same period in 2022.
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Looking ahead, Tesla said in its investor letter on yesterday (Jan 25) that it is ‘prepared for uncertainty’.
It also told backers it expected to produce around 1.8m vehicles this year but refused to give an estimate of deliveries for the year.
The letter said: ‘We are prepared for short-term uncertainty, while being focused on the long-term potential of autonomy, electrification and energy solutions.’
After the letter was sent, Musk held a conference call in which he hit back at reports that demand for Teslas is falling.
‘Orders are high,’ he said. ‘We think demand will be there, despite probably a contraction in the automotive market as a whole.’
Reacting to the latest update, shares of Tesla rose slightly yesterday evening to close at at $144.43.
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