Tesla’s profitability and consumer demand will be key to the success of their electric vehicle business this evening. That’s because this quarter was a make-or-break moment for the company.
Tesla announced new information about its production and a cheaper vehicle platform before announcing earnings. Its ticker symbol is TSLA.
Tesla enjoyed an edge over other EV makers in terms of cost when it dropped its price by as much as 20%. This was due to the company's lower-cost platform that gave it a competitive advantage over its competitors. With this initiative, Tesla could be preparing to take the title of largest EV maker in the world.
Tesla reported $24.3 billion in sales for their fourth quarter, resulting in earnings per share of $1.19. Additionally, the company reported an operating profit of $3.9 billion, setting a new record for the third quarter.
Wall Street expected $2.7 billion in total cash from the financial quarter. However, they were looking for earnings per share of about $1.13 and operating profit of $4.2 billion from sales of $24.7 billion. Additionally, they were looking for an operating profit of $4.2 billion from a sales of $24.7 billion, which would give the company free cash flow of $1.4 billion for the quarter. In 2023, the Street expects Tesla to produce 1.9 million units, compared to the company's planned 1.8 million units. This is looking toward the future of Tesla and its growth.