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Tesla reported Wednesday that Q4 earnings fell 40% to 71 cents per share. Meanwhile, quarterly revenue totaled $25.17 billion, up 3.5% vs. Q4 2022. Tesla’s gross profit margin came in at 17.6%, down 612 basis points.
TSLA shares sank after the company announced worse-than-expected Q3 earnings and revenue on Oct. 18. Tesla reported third-quarter earnings down 37% to 66 cents per share, the lowest in two years for Chief Executive Elon Musk.
Tesla lowered prices for its Model Y electric vehicles in Germany a week after it made similar reductions in China. That isn’t good news for the stock. Tesla cut the price of its Model Y Long Range and Model Y Performance by €5,000 (or about $5,400) on its website.
Wall Street had forecast Q4 EPS falling 39% to 73 cents with revenue increasing 5% to $25.62 billion. For the full 2023 year, analysts predicted earnings dipping 25% to $3.05 per share with sales of $97.46 billion, up 20%. Wall Street consensus had auto gross-profit margins, excluding regulatory credits, hitting 15.7% in Q4, according to FactSet.
“There’s lots to look forward to in 2024,” Musk said on the earnings call Wednesday. He added that Tesla is focused on ensuring that its next-generation vehicle, energy storage, full self driving and “other projects” are “executed as well as possible.”
Ahead of earnings, analysts were not overly optimistic. TSLA stock has slumped to begin 2024 with the company continuing to cut vehicle prices — putting pressure on margins — as electric vehicle supply outstrips demand. The EV giant is also not expected to see profits grow in 2024 compared to 2022 levels.