Tesla Stock Value Rises After Strong Q4 Results and Production Guidance for 2023

January 29, 2023
1 min read

Tesla, the electric vehicle giant, reported strong financial results for the fourth quarter of 2022 and issued production guidance for 2023 of approximately 1.8 million vehicles. The company generated $12.6 billion in GAAP net income and $14.1 billion in non-GAAP net income during the quarter. Additionally, Tesla revealed that it produced 439,701 vehicles in Q4 and delivered 405,278 vehicles. For the entire year, the company’s production rose 47% year-over-year to 1,369,611 vehicles and its deliveries increased by 40% to 1,313,851 vehicles. The results led to an increase in Tesla’s stock value during after-hours trading.

Tesla, the electric vehicle giant, reported that its operating margin came in at 16.0% of sales, a decrease from the previous quarter’s 17.2%. This decline was caused by an increase in raw material costs and negative foreign exchange impact that could not be fully offset by higher pricing and increased deliveries. Automotive gross margin, excluding regulatory credits, was 28.5%, which was lower than the 30.6% recorded the previous year and 27.9% in the last quarter. This margin also fell short of analyst’s expectations of 28.4%. The company acknowledged the inflationary effect on its cost structure and announced plans to speed up its cost-saving efforts.

Tesla (TSLA) announced that it plans to increase profits in the coming quarter through a combination of hardware and software-related revenues. The company also shared that its Model Y production line in Berlin had reached a capacity of over 3,000 vehicles per week by the end of the quarter, and that the Shanghai factory was operating at near full capacity. Additionally, Tesla stated that the development of the Cybertruck model remains on schedule with production set to begin later in the year at the Austin Gigafactory. The company also mentioned that it will reveal details about its next generation vehicle during its Investor Day on March 1st. Lastly, Tesla reported that it ended the quarter with a cash position of $22.4 billion, driven by free cash flow of $1.4 billion, partially offset by debt repayments of $497 million.

After gaining 0.38% during the regular session, shares of Tesla (TSLA) rose further by 0.35% in after-hours trading to reach $144.94. The electric vehicle giant’s conference call is set to take place at 5:30 p.m. ET, during which more information may be provided on production timelines, demand trends, and the impact of the Inflation Reduction Act. Other players in the sector also saw movement in after-hours trading, with Lucid Motors (LCID) down 0.23%, Fisker (FSR) down 0.13%, and Rivian Automotive (RIVN) down 0.27%.

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