Tesla has revealed its financial outcomes for both the fourth quarter and the entire year of 2023, showcasing the company’s latest performance metrics. The information was detailed in their Q4 and FY 2023 Update Letter, which was made public following the conclusion of the trading day on January 24, 2024.
Record Production and Deliveries
Continuing its trend of breaking production and delivery records, Tesla accomplished significant figures in the last quarter, manufacturing nearly half a million vehicles and delivering a slightly lower number. The annual production and delivery numbers also saw impressive totals, further emphasizing Tesla’s growth.
Financial Highlights
For Q4, Tesla’s revenue reached $25.1 billion, slightly missing the $25.7 billion projected by analysts. The automotive sector brought in $21.5 billion, again falling short of the expected $21.7 billion. Over the entire year, Tesla’s revenue soared to $96.8 billion, with the automotive division contributing $82.4 billion.
Earnings Metrics
The company’s non-GAAP earnings per share (EPS) for Q4 stood at $0.71, just below the consensus estimate of $0.73. However, Tesla’s GAAP EPS significantly outperformed Wall Street‘s forecast, coming in at $2.27 compared to the predicted $0.59. For the entire year, the non-GAAP EPS was $3.12, and the GAAP EPS was $4.30.
Operational Profitability and Margins
Tesla witnessed a decline in operating income year-over-year, ending Q4 with $2.1 billion and an operating margin of 8.2%. This decline was attributed to various factors, including a decrease in average selling price and costs associated with ramping up production of the Cybertruck. The company’s total GAAP gross margin for Q4 was 17.6%, with a full-year margin of 18.2%.
Liquidity and Cash Flow
The electric vehicle giant concluded Q4 with $29.1 billion in cash and investments, thanks to a $2.1 billion free cash flow and $0.9 billion from financing activities. This marked an increase of $3 billion from the previous quarter.
