Tesla’s report on the quarterly financial update shared earnings of $7.9 billion against a net income of $25.2 billion in revenue during the fourth quarter of 2023. An increase in revenue is spotted in the figures from $24.3 billion during last year. However, the company stated last week that sales growth may be “notably lower,” this year. Their reason, reportedly, lies in the interest to launch an affordable next-generation vehicle at a factory near Austin.
The Verge reported CEO Elon Musk’s statement about the company targeting production “towards the end of 2025” but warned about expected delays regarding the complexities involved in the manufacturing process. The article also documented the notice to shareholders stating that the “platform will revolutionize how vehicles are manufactured.”
This year’s profit margins still run lower than last year with only 8.2% rise from 7.6% growth in the previous quarter but is 16% lower than 2023. A series of price cuts have also contributed to its profit margins dipping down as compared to its once historic rise to as much as 20%, causing anxiety to investors. Investors are also nervous about Musk’s comments on Tesla’s AI work into a separate company in case he fails to increase his ownership size. This would abruptly undermine the company’s value.
Fewer Tesla vehicles qualify for EV tax credit as new rules for sourcing battery materials, are released at the beginning of the year. Only 5 battery-run EVs are eligible for the full credit and one plug-in hybrid vehicle, besides a few more qualifying for the $3,750 half credit.
The letter to the shareholders also mentioned Tesla positioned between the growth waves of global expansion of the Models 3 and Y on one hand, and the second to be generated from the new crossover vehicle in mid-2025.
The company is rumoured to have invited suppliers to start working on the car and is expecting to produce 10000 vehicles every week, which might lead to Tesla’s long-promised $25,000 vehicle for mass market consumers.
