Tesla announces record high revenue

Electric car maker Tesla has just released its financial results for the fourth quarter of 2022 with record revenue and net income. However, Tesla’s gross profit margin in auto production (the difference between sales and COGS divided by sales) fell.

Specifically, Tesla’s total revenue in the final quarter of 2022 increased 37% compared to the same period in 2021, to $ 24.3 billion, equivalent to a 13% increase from the previous quarter. In 2022, Tesla’s total revenue reached $81.5 billion, up 51% from 2021.

The company’s quarterly net income improved to $3.7 billion, year-over-year net income was $12.6 billion, more than double the level of a year ago.

In the fourth quarter of 2022, Tesla shipped 405,278 vehicles and in the whole of 2022, this number is 1.31 million vehicles, marking the delivery records of the US “giant”. Even so, the result is still below Wall Street and Tesla’s own expectations for 50% year-over-year growth, towards its goal of delivering 1.4 million vehicles in 2022.

Tesla of billionaire Elon Musk sells more than 1.3 million cars in 2022

Also in the fourth quarter of 2022, after implementing discounts and promotions, Tesla recorded an operating profit margin of 16%, gross profit margin in auto production was 25.9%, down nearly 5 percentage points from a year earlier. Investors expect this number to continue to decline this year.

According to Eric Schiffer, a Tesla investor and CEO of the private equity firm Patriarch Organization, Tesla’s profit margin in the first quarter of 2023 could be worse.

“(Tesla’s) performance outlook will depend on developments in the first quarter of 2023, in which demand may appear to be subdued,” said Eric Schiffer, reported by tech magazine TechCrunch quote.

“Tesla is not immune to a recession, and I still think the market will suffer more from the recession,” he added.

Even so, Tesla thinks the additional profit from the software business will help the company maintain a higher profit margin than any other automaker.

Faced with macroeconomic pressures, looming recession risks and increasing competition from other automakers, Tesla said its average selling price “has generally been going down for years” and the company will prioritize offering “affordable prices” to meet its goal of shipping millions of cars a year.

Tesla is expected to produce about 1.8 million cars in 2023. “As we move into 2023, we see the short-term effects of an uncertain macroeconomic environment, especially in light of the backdrop of an uncertain macroeconomic environment. interest rates rise,” the Tesla report said.

In addition, Tesla also confirmed that the company will accelerate its path to reducing costs and moving towards higher production rates.