Elon Musk’s Tesla Slightly Beats Q4 Revenue Estimates

Tesla narrowly beat analysts’ estimates for fourth-quarter revenue on Wednesday, thanks to record EV deliveries in the last three months of 2022.

In recent years, Tesla has outperformed the industry and increased sales and profits to records, surmounting the pandemic and global supply chain challenges better than the competition. But its recent sharp decline in global prices marks a move towards profit-driven growth, highlighting weakening demand.

The company’s revenue for the three months ended Dec. 31 was $24.32 billion, compared to the average analyst estimate of $24.16 billion, according to IBES data from Refinitiv.

Tesla said its automotive operating margin was 25.9% in the fourth quarter.

Tesla offered discounts in its core markets during the quarter after high orders allowed the company to maintain and even raise prices in recent years. CEO Elon Musk said in December that “drastic changes in interest rates” have affected the affordability of all cars.

The electric car maker handed over a record 405,278 vehicles to customers in the fourth quarter, even as the company fell short of its 50% annual growth target.

Net income for the quarter was $3.69 billion, or $1.07 per share, compared to $2.32 billion, or 68 cents per share, a year earlier.