Tesla Inc (NASDAQ:TSLA) reported 4Q financial results that fell short of expectations, causing concern among investors and highlighting challenges in the electric vehicle (EV) market.
Tesla's sales figures indicate that demand for its vehicles is slowing more than anticipated, amidst increased competition from both traditional automakers and Chinese EV companies.
The automotive manufacturer reported total revenue of $25.17 billion, which was below the anticipated $25.76 billion.
Its non-GAAP earnings per share were $0.71, which fell short of the estimated $0.73. On the other hand, the GAAP EPS stood at $2.27, surpassing the estimated $0.59.
The gross margin for the quarter was also a notable metric, with the total GAAP gross margin reported at 17.6%, slightly below the estimated 18.1%.
Tesla shares fell as much as 4% in after-hours trading but recovered to trade around 2.4% lower than its Wednesday closing price of $207.83.
On a brighter note, Tesla now holds a record $29.1 billion in cash. As well, the company reported delivering over 1.2 million Model Ys globally in 2023.
But Tesla anticipates a lower vehicle volume growth rate in 2024 compared to 2023, as it focuses on the global expansion of the next-generation vehicle platform notably at its gigafactory in Texas.
The growth rate of deployments and revenue in the Energy Storage business is expected to outpace the Automotive business in 2024.
Tesla said is working on innovations to reduce manufacturing and operational costs, expecting hardware-related profits to be complemented by accelerated profits in AI, software, and fleet-based operations over time.