Tesla beats expectations despite Musk being plagued by lawsuits

Tesla beats expectations despite Musk being plagued by lawsuits

Tesla beat Wall Street expectations on Wednesday with its highly-anticipated fourth-quarter earnings, buoyed by record electric vehicle deliveries in the last three months of 2022.

Electric vehicle companies had $24.3 billion in revenue, slightly above analyst estimates of $24.07 billion, and a 33% year-over-year growth rate. This suggests automakers may be doing a better-than-expected job of alleviating concerns about declining demand for cars. , logistical stagnation and the ongoing legal drama surrounding the CEO, Elon Musk.

To combat the slowdown in demand, Tesla has slashed the prices of its electric vehicles by up to 30%, dropping the price of its best-selling Model Y to $52,990 (a $13,000 markdown). The move saw a record 405,278 cars sold to customers in the fourth quarter, even though the company missed its annual growth target of 50%.

“Year-to-date demand is the strongest in our history,” Musk said on a conference call with investors Wednesday. “Price changes really make a difference.” Net income for the quarter was $3.69 billion, or 1.07 billion a share, compared with $2.32 billion, or 68 cents a share, in the same period last year. was a dollar.

The report comes at a time when Musk is facing a number of lawsuits. testimony of the week A lawsuit filed against him by Tesla investors alleges that his 2018 tweet about taking the company private cost them millions of dollars in damages.

Investors have expressed concern that Musk will not be able to manage the company properly after acquiring Twitter. economically impoverished But Wednesday’s positive reports suggest Tesla may eventually come out on top, said consultancy Alyssa Altman. the public will be wise.

“The future looks bright for Tesla knowing that Musk will be off Twitter soon and can overcome many of today’s headwinds of a recession comeback,” she said.

During Wednesday’s conference call, Musk defended his engagement with Twitter in response to a question about Tesla’s brand favorability, saying he has 127 million Twitter followers and is therefore “reasonably popular.” He suggested that using the platform would actually be beneficial for auto companies.

“Twitter is actually an incredibly powerful tool for driving demand for Tesla.” I would highly recommend using , which will help you grow your sales just like it does with Tesla.”

The company announced this week schedule Expands manufacturing facility in Nevada, hiring 3,000 people to ramp up production of the Tesla Semi, a large, all-electric truck.

In a phone call, Musk said the company plans to start producing Cybertruck pickups in Texas this year, but it’s likely that they won’t be able to buy them until next year.

Addressing investor concerns about economic and competitive pressures, Tesla said: [original equipment manufacturer] Better prepared to navigate 2023. ”

In a phone call, Musk said that so far in January the company has seen “the strongest order ever in its history.” It expects to hit 10,000 units, but said it has not formally projected that number in the event of external factors such as a recession.

“The reason we say 1.8m is because there always seems to be force majeure all over the world.

Reuters contributed to this report.

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