Saturday, January 28, 2023

Tesla shares surge with profit: “Millions of fully autonomous cars could be sold with 100% gross margin”

Tesla (DSLA) reported mixed fourth-quarter results on Wednesday, beating earnings estimates despite a lack of revenue views. Tesla shares soared on Wednesday, extending a powerful rally rebounding from a bear market by more than 40%.


After a terrible 2022, Tesla shares fell sharply in December and are set to decline again in 2023. However, Tesla has rallied since announcing its big price cut in China on January 6th and has continued to rise ever since. Announced price cuts in the United States and Europe. after a week.

Analysts and investors will be watching Wednesday’s results for a better idea of ​​what Tesla expects to hold for 2023.

Tesla shares rose 1.7% after hours. The stock rose 0.4% to 144.47 during the High Potential Market trading session on Wednesday.

tesla earnings

Rating: Analysts were expecting fourth-quarter earnings to rise 33% to $1.13 per share. At the end of December 2022, analysts anticipate EPS of $1.25. Analysts had set a revenue target of 39% growth to $24.67 billion.

revenue: Tesla’s EPS jumped 40% to $1.19, while revenue jumped 37% to $24.32 billion.

For the full year, revenue rose 51% to $81.46 billion, below estimates. Earnings per share jumped 80% to $4.07, beating Wall Street’s expectations.

Tesla has already announced its deliveries, with a record 405,278 set in the fourth quarter. It missed lower forecasts despite aggressive year-end incentives. Vehicle deliveries were up 31% from a year ago and up nearly 18% from 343,830 in the third quarter. Deliveries also increase by 40% to 1,313,851 in 2022. This was well below the company’s 50% growth target.

Analysts had expected Tesla’s fourth-quarter deliveries to be around 420,000, well below high estimates. Tesla’s third quarter deliveries also fell.

Tesla produced 439,701 in the fourth quarter, which was more than 34,000 ahead of deliveries. In the third quarter, the launch crossed sales of over 22,000. Tesla produced 439,701 in the fourth quarter, which was more than 34,000 ahead of deliveries. In the third quarter, the launch crossed sales of over 22,000.

With production increases at the company’s plants in Berlin and Austin, Texas, Tesla’s total production capacity now exceeds 450,000 for the quarter.

Tesla’s unit sales in 2022 were 1,313,851, up 40% from 2021, but below the 50% target. The Model 3 sedan and Model Y crossover account for most of the sales. The higher-end Model S and X vehicles remained.

Meanwhile, the Cybertruck is due to arrive in 2023, making it Tesla’s first new model since the Model Y debuted in early 2020. CEO Elon Musk says the often-delayed truck will begin “preliminary production” in the middle of the season. , Other reports claim that the cyberdrug will begin mass production in late 2023.

Tesla also started delivering its semi trucks long distances PepsiCo (Energy) It is unclear in December how many semi-trucks will be produced in 2023, and key pricing and specifications are still unclear. According to the Nevada Independent, Tesla is planning to build a $3.5 billion manufacturing plant for the semi-trucks in northern Nevada.

On Wednesday, Tesla confirmed that manufacturing and supply challenges for 2022 are “largely concentrated in China.”

Tesla plans to increase its production volumes “as quickly as possible” with a compound annual growth rate (CAGR) of 50%. That target starts in 2021. In 2023, Tesla expects to produce approximately 1.8 million vehicles, a 37% increase over 2022.

Electric vehicle company Cybertruck also said it is “on track to start production later this year.”

The company said that its next-generation vehicle platform is under development and more details will be shared at the Investor Day on March 1, 2023.

Tesla stock: will rise after the price cut

Tesla’s fourth-quarter earnings follows a record Tesla China EV rebound for the week of Jan. 5-16 following a recent big price cut. The latest registration figures show some of the benefits of Tesla’s Jan. 6 decision to cut prices in China.

Tesla slashed prices for the Model 3 and Y in China, with the base Model 3 slashed by more than 13% to $33,570. Local media reports in China have suggested that Tesla received 30,000 orders in the three days after announcing the cuts, according to CnEVPost.

Tesla has also announced price cuts in the US and Europe. This would make the model eligible for $7,500 in tax credits under the Inflation Reduction Act (IRA).

The electric vehicle giant has cut US Model 3 prices by between 6% and 14%, depending on the equipment. A standard-equipment Model 3 RWD has been slashed by $3,000 to $43,990. With the IRA tax credit applied to the vehicle, consumers meeting the income limit would pay $36,240.

The Performance Model 3 trim is down $9,000 to $53,990, which falls below the $55,000 threshold for tax credits. Meanwhile, Tesla’s base Model Y is down $13,000, or nearly 20%, to $52,990 and less than the tax credit limit. The performance version of that vehicle is $56,990 and has been reduced by $13,000.

Musk told investors on Wednesday that Tesla has “seen the strongest orders in our history” so far in January. The Tesla CEO said that orders are currently coming in at “double the production rate”, resulting in higher prices for the Model Y.

“I think there are a lot of people who want to buy a Tesla but can’t afford it. So these price changes really do make a difference to the average consumer,” Musk said.

“At Tesla, our goal has always been to make cars affordable to as many people as possible, so I’m glad we were able to do that,” he said.

autonomous driving mode

During Wednesday’s earnings call, Musk said Tesla has launched a full beta version of autonomous driving (FST) on city streets for about 400,000 customers in North America.

According to Musk, the electric vehicle company is currently at 100 million FSD miles, which doesn’t include highway driving.

“We wouldn’t have released the FSD beta if the security data wasn’t good,” Musk said.

The Tesla CEO said that autonomous driving software can now be loaded into all Tesla vehicles.

“That means there are millions of fully autonomous cars that can be sold essentially 100% full range,” Musk said. “The value of FSD increases as the autonomous capability increases, and then when it becomes fully autonomous, it increases the value of the fleet, the largest ever increase in asset value. »

tesla stock

Tesla shares soared 43% from a low of 101.81 on Jan. 6, hitting their 50-day and 10-week lines.

While many analysts weigh in on Tesla’s stock, lower price targets and earnings estimates.

TSLA’s shares rank third in the industrial conglomerate of automobile manufacturers. Tesla stock has 46 out of 99 stocks in Associate Assessments with a 5 IBD stock payout relative strength rating which is a measure of stock price movement. The EPS rating is 75.

Follow Kit Norton on Twitter @kidnorton for added security.

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Nation World News Desk
Nation World News Desk
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