For Tesla- The quarterly revenue of $25.2 billion, up only 3%, fell short of expectations
Tesla, once the world’s most valuable automaker, is facing challenges as it revises its ambitious sales targets amidst intensifying competition in the electric vehicle (EV) market. Despite a 38% increase in deliveries in 2023, falling short of the targeted 50% annual growth rate, the company’s recent warnings suggest a potential slowdown in 2024. Tesla’s loss of the top spot in global EV sales to Chinese automaker BYD in the fourth quarter further underscores these challenges.
The company attributes its slower growth to efforts in launching the next-generation vehicle, speculated to be a lower-priced model. Notably, delays in production, particularly for the long-awaited Cybertruck pickup, contribute to the revised growth outlook. CEO Elon Musk admitted the Cybertruck’s profitability might take over a year, emphasizing manufacturing complexity.
Tesla’s disappointing earnings report revealed adjusted earnings of 71 cents per share, slightly below analysts’ forecasts, and a 40% decline from the previous year. The quarterly revenue of $25.2 billion, up only 3%, fell short of expectations, signaling the impact of repeated price cuts on the average sales price. This marks the second consecutive quarter where Tesla has fallen short of earnings forecasts, indicating a departure from its earlier trend of surpassing expectations since the beginning of 2021. Consequently, Tesla’s stock experienced a 5% decline in after-hours trading.
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