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Key Takeaways
- Tesla fell short of analysts’ expectations in revenue, diluted earnings per share and income.
- The company reported operating net income of $2.06 billion, diluted EPS of 71 cents per diluted and revenue of $25.17 billion.
- The EV-maker has been slashing prices to garner more sales volume, squeezing margins.
- Tesla shares were down 3% in after-hours trading.
Tesla Inc.’s (TSLA) fourth-quarter earnings fell short of analysts’ expectations as repeated price reductions squeezed margins. Tesla shares were down about 3% in after-hours trading following the quarterly report from the electric vehicle maker.
Tesla reported operating income of $2.06 billion, down 47% from a year ago and below the $2.23 billion expected by analysts. Diluted earnings per share came in at 71 cents, also below the consensus view compiled by Visible Alpha.
Fourth quarter revenue was up 3% from a year ago at $25.17 billion but came in slightly worse than analysts had expected.
| Q4 2023 | Analyst Estimates for Q4 2023 | Q4 2022 | Year-over-year % change | |
|---|---|---|---|---|
| Revenue | $25.17 billion | $25.88 billion | $24.31 billion | 3% |
| Operating Earnings Per Share (diluted) | $0.71 | $0.78 | $1.19 | -40% |
| Operating Income | $2.06 billion | $2.23 billion | $3.9 billion | -47% |
Key Metric
Tesla CEO Elon Musk’s strategy of price cuts to boost sales volume has put pressure on the company’s margins. With fourth-quarter deliveries of 484,507, Tesla met its annual target, but that target had been reduced from a prior 2 million.
For the quarter ended in December, Tesla reported an operating margin of 8.2%, nearly half of the 16% the company reported over the same period in 2022.