Tesla electric car company was able to achieve better-than-expected profits in the fourth quarter of 2022, despite conflicting signals announced by the company about growth expectations in car deliveries.
According to ArabiaNet, Tesla reported adjusted earnings of $1.19 per share, beating analysts' average estimate of $1.12.
The electric car company said it would ramp up production as quickly as possible, in line with previous guidance for an average annual growth of 50 percent over several years.
Tesla stated that it is on track to deliver about 1.8 million cars this year, which represents a jump in production of only about 37%.
On a call with analysts, the company's CEO, Elon Musk, reiterated the outlook is conservative, saying production could be closer to 2 million vehicles without unexpected disruptions.
Musk sought to allay concerns about consumer demand for Tesla cars as the company ramped up production.
He added: The most common questions we receive from investors are about demand, so I want to put this concern aside, noting that Tesla is currently seeing orders of almost twice the rate of production after significant price cuts.
Musk confirmed: Demand will be good despite the potential downturn in the auto market as a whole.
Tesla will nearly double its production capacity in 2022.
Its annual production estimate for the fourth quarter was a new record, and close to the company's total production capacity for the first time.
And Tesla confirmed that it remains on track to start building its long-awaited Cybertruck in Austin later this year.
Tesla's revenues during the fourth quarter of last year amounted to $ 24.3 billion, slightly exceeding market expectations.
However, auto gross margins were 25.9%, below the average analyst estimate of 28.4% - a sign of potential investor jitters after the latest round of price cuts.
In the same period in 2021, the gross profit margin for cars was 30.6%.
Carbon certificates
Income from the sale of regulatory credits, or carbon certificates — which other automakers use to offset greenhouse gas emissions — came to $467m, up from $286m in the previous quarter and $314m a year ago.
Tesla said it expects that revenue to shrink over time as competitors release more electric vehicles to comply with emissions regulations and meet growing demand.
