Tesla’s margins are deflating after the company slashed prices. The company says its operating income fell in the fourth quarter, partly due to lower average selling price for its vehicles. That offsets a benefit from lower cost per vehicle. Still, the price-cuts, meant to boost demand, had some impact, with the Tesla Model Y sales surging in 2023.

By Rebecca Elliott Tesla warned of slower growth in 2024 without sharing a specific target, signaling more uncertainty ahead for the world’s most valuable automaker. The company reported fourth quarter net income more than doubled year-over-year to $7.9 billion, largely due to a one-time tax benefit. However, its income from operations was down 47% and its quarterly revenue came in shy of analysts’ expectations. “Our company is currently between two major growth waves,” Tesla said Wednesday, cautioning that growth “may be notably lower” than it was last year, when Tesla increased annual vehicle deliveries 38%. The company’s more subdued forecast is a sharp reversal from a couple of years ago, when demand seemed limitless and profitability was robust. Now, the electric-vehicle company is confronting softening demand, shrinking margins and intensifying competition from rival electric-vehicle makers. Tesla’s once industry-leading operating margin improved slightly quarter-over-quarter to 8.2% for the final three months

Tesla (TSLA) late Wednesday reported fourth-quarter results that were below Wall Street’s estimates as its margin nearly halved year over year while the electric vehicle manufacturer said volume growth this year will likely trail the rate achieved in 2023. Revenue increased 3% year over year to $25.17 billion but trailed the consensus on Capital IQ for $25.76 billion. Tesla reported adjusted per-share earnings of $0.71, down from $1.19 a year earlier and below the Street’s view of $0.74. The stock was down 3.4% in after-hours trade. The company said in a shareholder deck that sales benefited from higher deliveries and foreign exchange gains but were weighed down by lower average selling prices, which also hurt margins. Operating margin shrank by 784 basis points year over year to 8.2% amid costs associated with Cybertruck’s production ramp and other expenses,Tesla said. “Our team remains focused on growing our output, investing in our

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We lower our 12-month target $25 to $275 on a ’25 P/E of 50x, justified by long-term growth expectations. We lower our adjusted EPS estimates by $0.85 to $3.90 for ’24 and by $0.75 to $5.50 for ’25. TSLA posted Q4 adjusted EPS of $0.71 vs. $1.19 (-40%), three cents shy of consensus. Revenue rose 3.5% to $25.17B ($590M below consensus) and gross margin contracted 620 bps to 17.6% (50 bps below consensus). We think Wednesday’s Reuters report that TSLA plans to launch its long-awaited mass market EV model (a compact crossover code named “Redwood”) with first production as early as mid-2025 could be the catalyst the stock needs after some profit taking so far in January after shares more than doubled in 2023. While the bottom-line

Tesla’s Musk Said Many Companies Don’t Believe That FSD Is Real -Earnings Call.