Tesla shares fell about 6 percent in the after-hours session on Wall Street, after the electric car maker revealed revenue and profits for the fourth quarter that were lower than analysts’ expectations.

The following are the company's most important results:

  • Earnings per share: 71 cents versus expectations of 74 cents according to LSEG, formerly known as Refinitiv.
  • Revenue: $25.17 billion versus expectations of $25.6 billion according to LSEG.

The company said that total revenues rose by 3 percent to $25.17 billion, compared to $24.3 billion it had recorded in the same quarter of 2022.

The operating margin for the fourth quarter was lower at 8.2 percent than 16 percent in the same quarter last year and slightly higher than 7.6 percent in the previous quarter.

The weak growth in automobile revenues was partly due to a decline in the average selling price after sharp price cuts around the world in the second half of the year.

Net income for the fourth quarter more than doubled to $7.9 billion, or $2.27 per share, versus $3.7 billion, or $1.07 per share, in the same quarter in 2022. The increase was primarily due to a one-time non-cash tax gain of $5.9 billion. .

Tesla said in its investor presentation that vehicle volume growth in 2024 may be significantly lower than last year's growth rate as the company works to launch its next-generation vehicle in Texas.

The company warned investors that it is currently between two major waves of growth. This means that the company is preparing for a new phase of growth after the success of the Model 3 and Model Y cars, but it has not yet reached the level of growth associated with the upcoming new car.

Control Tesla

CEO Elon Musk, when talking about earnings, was asked whether investors were uncomfortable with his stated desire to own 25 percent of Tesla. The question was in reference to a recent tweet in which Musk said that's how much voting control he wants before turning Tesla into a leader in artificial intelligence and robotics.

Musk responded by saying he didn't want to be in a position to be voted on by a random shareholder advisory board. He proposed the possibility of creating a dual-class share structure.

Musk pointed to voting consulting firms Institutional Shareholder Services (ISS) and Glass Lewis as groups creating challenges, along with activists who infiltrate companies and have strange ideas about what to do. When mentioning ISS, Musk referred to it as ISIS.

When executives were asked about the production timeline for Tesla's humanoid robot, called Optimus, they declined to give any specific guidance.

Musk described Optimus as something that I believe has the potential to exceed the value of everything else combined for Tesla. He claimed that Tesla's technology developed at its automotive unit translates well to a human robot because a car is just a robot on four wheels.

Musk described Optimus as the most advanced humanoid robot being developed anywhere in the world.

Musk said Tesla has a good chance of shipping a number of Optimus units next year, but he did not specify their capabilities or cost.

Cybertruck trucks

During the past quarter, Tesla began delivering Cybertruck trucks to customers. The company said in its presentation to investors: We expect that production of the Cybertruck will take longer than other models due to the complexity of its manufacture.

Tesla added that it now has the capacity to build more than 125,000 Cybertruck trucks annually.

During the earnings call, Elon Musk described the Cybertruck as our best product ever, and said: We expect to deliver approximately a quarter of a million Cybertruck trucks annually, without giving a specific time frame.

Summary of Tesla's performance for the fiscal year 2023.. Key points:

  • Automotive revenues: increased by 15 percent to reach $82.42 billion year-on-year.
  • Solar sector: witnessed strong growth of 54 percent to reach $6.04 billion.
  • Services and others: grew by 37 percent to reach $8.32 billion.
  • Operating profits: Decreased due to a decrease in the average selling price of cars and an increase in operating expenses, especially in the field of artificial intelligence and research and development.
  • R&D: Increased to $1.09 billion, reflecting Tesla's investments in future technologies.
  • Self-driving software FSD Beta: A new version has been released, but it doesn't make Tesla cars fully autonomous.
  • Supercharger charging network: Expanded to include 54,892 charging points in 5,952 stations around the world.

It is noteworthy that Tesla shares fell by about 16 percent so far this year until Wednesday’s close after doubling in 2023.