Tesla Announces Record Profit
On Wednesday, Elon Musk's electric vehicle maker Tesla reported nearly $3
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Facts
- On Wednesday, Elon Musk's electric vehicle maker Tesla reported nearly $3.7B in fourth-quarter profit, up 59% from the year prior and a record profits report for the company.
- The company also announced that its revenue in the last three months of 2022 was $24.32B — up from some analysts' predictions of $24.16B — and its automotive operation margin was the lowest in two years at 25.9%.
- Although Tesla adopted price cuts on its vehicles in the US, China, and some European markets, they didn’t kick in until the first quarter, so the fourth quarter report wasn’t affected by those cuts.
- Since its last earnings report, Tesla has frequented headlines after Elon Musk, who also heads SpaceX, sold much of his Tesla stock in order to purchase Twitter for $44B in October.
- Since the start of the year, the company's vehicle sales have jumped 46% to 1.9M, though that's under the company's goal of 50%.
- Following Tesla's fourth quarter reporting, the company's stock saw a slight surge in after-hours trading.
Sources: Wall Street Journal, Reuters, Finance, Bloomberg, Investing and Finance.
Narratives
- Narrative A, as provided by Forbes. Musk can brag about setting another record for profits, but the positive news might not be enough to quell the anxiety of investors. Aside from what might be going on with Musk away from Tesla, the company could be facing softening demand, and the dip in its usually competitive automotive gross margin could lead to a major drop in its stock price.
- Narrative B, as provided by Business Insider. Musk's success with all his businesses makes him a Wall Street favorite, and there’s no reason to shy away from believing in him now. The latest report paints an optimistic picture for 2023 and signals plenty of upside for the electric vehicle maker's stock, regardless of what else Musk is dabbling in.
