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Tesla’s Stock Falls 8% On Q4 Earnings Miss

The stock of Tesla (TSLA) is down 8% after the electric vehicle maker missed Wall Street estimates for its fourth-quarter financial results and warned of a slowdown in the year ahead.

Tesla reported earnings per share (EPS) of $0.71 U.S. compared to $0.74 U.S. that was the consensus expectation of analysts who track the company’s progress.

The company’s revenue in the final months of 2023 totaled $25.17 billion U.S. versus $25.60 billion U.S. that was expected on Wall Street, according to data by LSEG.

Tesla’s sales increased 3%. Its operating margin of 8.2% was about half the year-ago figure of 16%.

The poor results were largely blamed on steep price cuts for the company’s electric vehicles around the world. Tesla has been lowering prices to boost sales over the past year.

Looking ahead, Tesla executives sounded downbeat, saying that they expect electric vehicle volume growth in 2024 to be “notably lower.”

When asked about the timing of other projects in the works at Tesla, such as the humanoid robot called “Optimus,” executives declined to provide any information or guidance.

During Q4 2023, Tesla began selling its new Cybertruck to customers though it did not have a noticeable impact on the company’s Q4 earnings.

Executives said they plan to build about 125,000 Cybertrucks this year.

For all of 2023, Tesla reported revenue of $82.42 billion U.S., a 15% increase from 2022 levels.

The energy division, which is much smaller than Tesla’s core motor vehicle unit, saw revenue rise 54% to $6.04 billion U.S. last year. The unit sells solar energy generation and storage systems.

Prior to today (Jan. 25), Tesla’s stock had fallen 16% so far in 2024 to trade at $207.83 U.S. per share.

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