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Tesla's fourth-quarter results, released after the closing bell on Wednesday, fell short of Wall Street expectations, sending the stock down more than 5% in extended trading.
The electric vehicle giant's sales rose 3% to $25.17 billion, falling short of analysts' expectations of $25.62 billion, according to LSEG data. The rise marks the slowest pace of growth for Tesla in more than three years.
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The Austin, Texas-based company reported gross profit margin of 17.6% for the three months ended December, below analysts' average estimate of 18.3%. Tesla's gross profit margin for the same period last year was 23.8%.
Tesla also achieved record deliveries in the quarter, and battery raw material costs fell, but profit margins fell due to price cuts and expenses associated with increasing production of the new CyberTac.
The Tesla corporate logo is displayed on the front of a Tesla store in Santa Monica, Los Angeles, California on April 10, 2023. (Gary Hershawn/Getty Images/Getty Images)
Tesla met its delivery goal of 1.8 million cars last year, but cut prices several times.
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On Tuesday, longtime Tesla shareholder Ross Gerber criticized CEO Elon Musk's leadership in an interview on FOX Business' “Claman Countdown,” expressing concerns about the direction of the electric vehicle giant and its dynamic pricing model. .
Ross Gerber, president and CEO of Gerber Kawasaki, analyzes demand for Tesla EVs in “Craman Countdown.”
“If you make more cars, you have to sell them at a lower price because you're essentially not creating new demand. And most of the EV buyers who want EVs are buying EVs,” Gerber said. said. “So I don't know what Tesla will do in terms of revenue. They'll sell more cars, but I don't see how they'll make more money with their current strategy.”
The earnings report was disappointing for Tesla investors.
The Tesla co-founder speaks in front of the newly unveiled all-electric Tesla Cybertruck, which failed durability tests and had a broken window, at the Tesla Design Center in Hawthorne, California, on November 21, 2019. and CEO Elon Musk. (Frederick J. Brown/AFP via Getty Images/Getty Images)
“What we really want is not to fail, and that's what I'm really concerned about,” Gerber said ahead of the earnings report. So all we really want is for them to beat that number. ”
FOX Business' Aislinn Murphy, Kristen Altus and Reuters contributed to this report.
