Tesla, with record profits, says it can overcome short-term uncertainties

Tesla, with record profits, ensures it can overcome short-term uncertainties< /p> UPDATE DAY

Tesla posted record profits in the fourth quarter and, faced with growing doubts about demand for its electric vehicles, says it is ready to face “short-term uncertainties”. 

The group saw its turnover rise by 37% over the period, to reach 24.3 billion dollars, and its net profit soar by 59 % to 3.7  ;billion, levels never reached before. 

For the year as a whole, its turnover jumped by 51% to 81.5 billion dollars and its net profit more than doubled, to 12.6 billion.

“We know that there are questions about the near-term impact of the uncertain macroeconomic environment, particularly with rising interest rates,” Tesla noted in a statement. 

< p>But the company “is used to challenges”, adds the group. For now, it is “accelerating its cost reduction program and targeting higher production rates”. 

Its margins on the automotive business have fallen slightly.

< p>Some observers fear that the economic slowdown, the rise in interest rates, which makes it more expensive to buy a car on credit, and the arrival of multiple competitors on the market for electric vehicles, start-ups such as traditional manufacturers, do not hinder the development of Tesla.

Lower prices

In 2022, Tesla delivered 1.31 million electric vehicles, which represents a record and a jump of 40% over one year. But the company had set a long-term goal of growing shipments by an average of 50% per year.

On Wednesday, it was more vague about its outlook for 2023, saying wanting to reach 1.8 million vehicles over the year without specifying whether it was delivery or production.

Some analysts are also concerned that Elon Musk is getting agitated at the head of Twitter, the social network he bought at the end of October for 44 billion dollars, and not focusing as it should on Tesla. 

The multi-billionaire has also been distracted in recent days by a trial he had to testify to, with investors accusing him of misleading them when he tweeted in 2019 that he wanted to take his car group off the stock market at a price of $420 per share, then ensuring the funding was “secured”.

Tesla stock fell 65% in 2022, before recovering a bit since the start of the year .

To boost sales, the company has lowered its prices in recent months, first in China and then in Europe and the United States, sometimes by as much as 20%. A move seen by some analysts as necessary to defend market share, by others as a sign of weakness. 

Tesla defended its position on Wednesday, saying making its cars more accessible is “ necessary to become a manufacturer producing several million vehicles”. 

The manufacturer is also counting on the arrival on the market of its electric truck, Semi, the first model of which was delivered in December, and on its Cybertruck pick-up, which should normally be available during the year.

The stock was up 1.2% in electronic trading following the close of Wall Street.