Tesla disclosed its financial results and shareholders’ letter for the fourth quarter and full-year 2023 after the market closed today, revealing earnings of $0.71 per share (non-GAAP) and revenue of $25.167 billion in the last quarter. This figure missed expectations, prompting an update on the company’s performance.
The GAAP earnings, however, stood significantly higher at $2.27 per share, with Tesla attributing the difference to a one-time non-cash tax benefit of $5.9 billion recorded in Q4. This benefit was associated with the release of a valuation allowance on certain deferred tax assets.
Despite the higher GAAP earnings, Tesla’s gross margin on vehicles experienced a slight decline, dropping to 17.6% from 17.9%. This decrease was attributed to ongoing price cuts, which are outpacing the rate of cost-cutting efforts. However, the automaker reported a sequential decline in the cost of goods sold per vehicle in Q4, indicating a commitment to cost reduction.
Tesla emphasized its focus on growing output, investing in future growth, and seeking additional cost efficiencies in 2024. The company acknowledged the challenge posed by price reductions but maintained efforts to balance these with strategic cost-saving measures.
The financial results indicate a nuanced performance for Tesla in Q4 2023, with both missed earnings expectations and positive strides in cost reduction. Investors will likely be keenly interested in the company’s plans for navigating these challenges and sustaining growth in the upcoming year.
