Tesla Beats Expectations With Record Fourth Quarter Revenue and Profits

• Tesla beat analysts’ expectations in terms of earnings and revenue in the fourth quarter of 2022.
• Revenue for the quarter was $24.32 billion, while adjusted earnings per share were $1.19.
• Automotive revenue for the quarter was $21.3 billion, a 33% YoY jump, with regulatory credits accounting for $467 million of the total.

Tesla, the electric vehicle maker, released its fourth-quarter earnings for the past year, noting that revenue came in at $24.32 billion, higher than analysts’ projection of $24.16 billion. At the same time, adjusted earnings per share for the quarter were $1.19 instead of the expected $1.13 per share. This marked a significant increase from the same quarter in the previous year, when the company reported revenues of $17.72 billion.

Tesla CEO Elon Musk told shareholders and analysts that the company had record orders in January, a sign of strong demand for its products. The strong results for the fourth quarter of 2022 demonstrated the company’s ability to capitalize on the increasing demand for electric vehicles.

Automotive revenue for the quarter was $21.3 billion, a 33% year-over-year jump, with regulatory credits accounting for $467 million of the total. However, the company also recorded the lowest figure for automotive gross margin in the last five quarters at 25.9%. This was likely due to the average sales prices of the company’s products decreasing over the past year.

In addition to strong automotive revenue, Tesla reported strong energy storage and generation revenue. This segment of the business saw a year-over-year increase of 229%, with revenue coming in at $1.81 billion. This was mainly attributed to the company’s solar roof products, which have become increasingly popular.

Overall, Tesla’s fourth-quarter earnings were strong, and demonstrate the company’s ability to capitalize on the growing electric vehicle market. The strong revenue figures for the quarter, coupled with the record orders in January, suggest that the company’s growth trajectory is likely to continue in the near future.