Tesla conference call 20218/12/2023 ![]() ![]() ![]() And so these price changes really make a difference for the average consumer.” “The vast number of people that want to buy a Tesla car, can’t afford it. The company acknowledged that average sales prices have “generally been on a downward trajectory for many years,” and that Tesla aims to prioritize “affordability” so that it can grow into a company that sells multiple millions of cars annually. During Wednesday’s earnings call, Musk said Tesla has the potential to reach 2 million cars this year but is being cautious given market uncertainty. Regardless, Tesla still intends to grow production as quickly as possible “in alignment with the 50% CAGR target we began guiding to in early 2021,” and reach 1.8 million cars in 2023. Similarly, Tesla’s 1.3 million vehicle deliveries in 2022 was also a record for the automaker, but that number misses Tesla’s own guidance of achieving 50% growth YoY and getting to 1.4 million deliveries. While those were record deliveries, the automaker still missed Wall Street estimates for the third quarter in a row. In fact, he said, demand exceeds production.Įarlier this month, Tesla reported vehicle deliveries of 405,278 in the fourth quarter. “As other areas of the business become more important, and particularly the energy business which is growing faster than the vehicle business, we’re heavily focused on operating leverage here and improving the efficiency of our overheads,” said Zachary Kirkhorn, Tesla’s chief financial officer, during Wednesday’s earnings call.ĬEO Elon Musk wanted to put concerns around demand to bed during the call, saying that after the company brought down prices, January saw the strongest demand ever in Tesla’s history. Tesla acknowledged that short-term automotive margins will be impacted by the decrease in prices and the general inflationary environment, but the company’s management is more focused on its operating margin. “The outlook will still depend on the recent moves of Q1, which suggest some compression in demand,” Schiffer told TechCrunch, referring to January’s price cuts. Margins in the first quarter of 2023 might look worse, says Eric Schiffer, the CEO of private equity firm Patriarch Organization. While Tesla as a whole closed the quarter with a 16% operating margin, automotive gross margins came in at 25.9%, which is the lowest figure in the last five quarters. Investors today were on the lookout for gross margins after Tesla slashed prices and offered multiple discounts on its vehicles. Tesla’s stock saw a 3.2% spike to $149 per share immediately after earnings dropped and continued to rise to $151.52 in after-hours trading. The electric vehicle maker had $1.4 billion in free cash flow at the end of Q4, which is down from the $3.3 billion the company had in the bank at the end of the third quarter. Analysts had expected the company to earn around $24.2 billion, according to Yahoo Finance data. The company closed out Q4 with $24.3 billion in revenue, a 37% increase from the same quarter last year and a 13% bump quarter-over-quarter. Tesla just beat Wall Street revenue estimates for the fourth quarter of 2022. ![]()
0 Comments
Leave a Reply.AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |