You’re here (TSLA) reported mixed fourth-quarter results on Wednesday, beating earnings estimates while missing revenue views. Tesla stock rose on Wednesday, extending a powerful rebound of more than 40% from the bear market low.
After a terrible 2022, in which Tesla stock fell sharply in December, shares fell again to start 2023. However, Tesla has rebounded from its major price cuts announced on January 6 for vehicles in China. , and has been steadily increasing since the announcement of price cuts in the United States and Europe. a week later.
Analysts and investors will take a close look at the results on Wednesday to get a better idea of what Tesla expects for 2o23.
Tesla stock rose 1% after hours. The shares edged up 0.4% to 144.47 in Wednesday’s trading, reversing higher.
Estimates: Analysts expect earnings to rise 33% to $1.13 per share in the fourth quarter. At the end of December 2022, analysts forecast EPS of $1.25. Analysts had set the revenue target at 39% growth, to $24.67 billion.
Earnings: Tesla’s EPS rose 40% to $1.19 while revenue rose 37% to $24.32 billion in the fourth quarter.
For the full year, revenue rose 51% to $81.46 billion, estimates missing. Earnings jumped 80% to $4.07 per share, beating Wall Street expectations.
Tesla had previously announced that its deliveries hit a record 405,278 in the fourth quarter. That missed the lowered forecast despite aggressive end-of-year incentives. Vehicle deliveries jumped 31% from a year earlier and nearly 18% from 343,830 in Q3. Shipments also increased by 40% to 1,313,851 in 2022. This was well below the company’s 50% growth target.
Analysts had expected deliveries of around 420,000 Tesla in the fourth quarter, significantly reduced from higher estimates. Tesla’s deliveries in the third quarter had also been insufficient.
Tesla production rose to 439,701 in the fourth quarter, exceeding deliveries by more than 34,000. In the third quarter, production exceeded sales by just over 22,000. Tesla production rose amounted to 439,701 in the fourth quarter, exceeding deliveries by more than 34,000. In the third quarter, production exceeded sales by just over 22,000.
With increased production at the Berlin and Austin, Texas factories, Tesla’s overall production capacity is now well over 450,000 per quarter.
Tesla unit sales were 1,313,851 for 2022, up 40% from 2021 but below the 50% target. The Model 3 sedan and Model Y crossover accounted for the vast majority of sales. High-end Model S and X vehicles made up the rest.
Meanwhile, the Cybertruck is expected to arrive in 2023, which would be Tesla’s first new model since the Model Y launched in early 2020. The oft-delayed truck will begin “early production” mid-year, according to Musk . Other reports indicate that the Cybertruck will begin mass production in late 2023.
Tesla has also started delivering its long-haul tractor-trailers to PepsiCo (PEP) in December. It’s unclear how many semi-trailers will be produced in 2023, with pricing and key specs still unclear. Tesla plans to build a $3.5 billion manufacturing plant in northern Nevada for tractor-trailers, according to the Nevada Independent.
On Wednesday, Tesla confirmed that production and delivery issues throughout 2022 “are largely concentrated in China.”
Tesla plans to increase production volume “as quickly as possible” to align with its compound annual growth rate (CAGR) target of 50%. That goal dates back to 2021. For 2023, Tesla said it plans to produce about 1.8 million vehicles, a 37% increase from 2022.
The electric vehicle giant also said the Cybertruck “remains on track to begin production later this year.”
The company added that its next-generation vehicle platform is under development and additional details would be shared at its Investor Day on March 1, 2023.
Tesla stock: profits come after price cuts
Tesla’s fourth-quarter earnings follow a rebound in Tesla China EV registrations during the week of Jan. 5-16, following recent steep price declines. The most recent registration numbers appear to reflect some benefits from Tesla’s Jan. 6 decision to cut prices in China.
Tesla has slashed prices for the Model 3 and Y in China, with the base Model 3 slashed more than 13% to $33,570. Local media in China suggested that Tesla had received 30,000 orders within three days of the announced cuts, according to CnEVPost.
Tesla also announced price cuts in the United States and Europe. This will make more models eligible for $7,500 tax incentives under the Inflation Reduction Act (IRA).
The electric vehicle giant has cut prices for the US Model 3 by 6 to 14 percent, depending on the version. A standard version of the Model 3 RWD has been reduced from $3,000 to $43,990. With the IRA tax credit applied to the vehicle, consumers who meet the income limits would pay $36,240.
The Performance Model 3 version was reduced by $9,000 to $53,990, falling below the $55,000 limit for tax credits. Meanwhile, Tesla’s base Model Y has been discounted by $13,000, or nearly 20%, to $52,990, also below the tax credit limit. The Performance variant of this vehicle has been reduced to $56,990, also down $13,000.
Tesla stock has climbed 43% from a low of 101.81 on Jan. 6, hitting its 50-day and 10-week lines.
This despite a number of analysts also weighing on Tesla stock, cutting price targets and earnings estimates.
TSLA shares rank third in the automaker industry group. Tesla stock has a composite rating of 46 out of 99. The stock has a relative strength rating of 5, an IBD Stock Checkup proprietary gauge for stock price performance. The EPS rating is 75.
Please follow Kit Norton on Twitter @KitNorton for more coverage.
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