Tesla Stock Earnings Boom: “Millions of Fully Self-Driving Cars Can Be Sold at 100% Gross Margin”

Tesla (D.S.L.A) reported mixed fourth-quarter results on Wednesday, topping earnings estimates despite missing revenue views. Tesla shares rose on Wednesday, extending a powerful rebound of more than 40% from a bear market.




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After a terrible 2022, Tesla shares fell sharply in December, and shares fell again in 2023. However, Tesla has rallied since announcing big price cuts for vehicles in China on Jan. 6, and has continued to rise since announcing the U.S. and European price cuts. After a week.

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

Tesla earnings

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

Revenue: Tesla’s EPS jumped 40% to $1.19, while revenue rose 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 deliveries A record 405,278 was reached in the fourth quarter. It missed lowered forecasts despite aggressive year-end incentives. Vehicle deliveries were up 31% from a year ago and almost 18% against Q3’s 343,830. Deliveries also increased by 40% to 1,313,851 in 2022. This was well below the company’s 50% growth target.

Analysts expected Q4 Tesla deliveries to be around 420,000, down significantly from higher estimates. Tesla’s Q3 deliveries also fell.

Tesla production was 439,701 in the fourth quarter, surpassing deliveries by more than 34,000. In Q3, the release topped sales of more than 22,000. Tesla production was 439,701 in the fourth quarter, surpassing deliveries by more than 34,000. In Q3, the release topped sales of more than 22,000.

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With increased production at the company’s Berlin and Austin, Texas plants, Tesla’s overall production capacity is now more than 450,000 for the quarter.

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

Meanwhile, the Cybertruck is slated 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 “initial production” in the mid-season. Other reports claim that the Cyberdrug will begin mass production in late 2023.

Tesla has started taking delivery of its long-haul semi-trucks PepsiCo (PEP) in December. It’s unclear how many semi trucks will be produced in 2023, and key prices and specifications are still unclear. According to the Nevada Independent, Tesla plans to build a $3.5 billion manufacturing facility in northern Nevada for semi trucks.

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

Tesla plans to increase its production volume “as quickly as possible” with a 50% compound annual growth rate (CAGR). That goal starts in 2021. In 2023, Tesla expects to produce about 1.8 million vehicles, a 37% increase compared to 2022.

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

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

Tesla stock: Earnings to come after price cut

Tesla’s Q4 earnings follow Tesla China EV records Bounces during the week January 5-16 following recent big price cuts. The latest registration numbers appear to reflect some of the benefits of Tesla’s Jan. 6 decision to cut prices in China.

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Tesla slashed prices for the Model 3 and Y in China, with the base Model 3 slashed by more than 13% to $33,570. Local media reports in China have suggested Tesla Received 30,000 orders within three days According to CnEVPost, the announced cuts.

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

The EV giant has slashed US Model 3 prices by 6%-14%, depending on trim. A standard trim Model 3 RWD is reduced by $3,000 to $43,990. With the IRA tax credit applied to the vehicle, consumers who meet the income limits will pay $36,240.

The Performance Model 3 trim is down $9,000 to $53,990, which falls under the $55,000 threshold for tax credits. Meanwhile, Tesla’s base Model Y has been reduced by $13,000, or nearly 20%, to $52,990 and less than the tax credit limit. The performance variant of that vehicle 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.” The Tesla CEO said orders are currently coming in at “twice the rate of production,” 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 these price changes really make a difference to the average consumer,” Musk said.

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

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Self-driving mode

During Wednesday’s earnings call, Musk said Tesla has deployed the full self-driving (FST) beta to city streets for about 400,000 customers in North America.

According to Musk, the EV company is currently at 100 million miles FSD, not including highway driving.

“We wouldn’t have released the FSD beta if the security stats weren’t great,” Musk said.

Self-driving software can now be uploaded to all Tesla vehicles, the Tesla CEO said.

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

Tesla stock

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

While many analysts have weighed in on Tesla shares, Lowering price targets and revenue estimates.

TSLA shares are in third place Automobile Manufacturers Industry Group. There are 46 in Tesla stock Collaborative assessment In 99. The stock has a Relative Strength Rating of 5 IBD Stock Checkout A measure of stock price movement. The EPS rating is 75.

Follow Kit Norton on Twitter @kidnorton For added security.

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