Business News Asia
Tesla Inc., the largest electric vehicle manufacturer in the United States, reported better-than-expected results for the fourth quarter of 2022. The company’s earnings per share (EPS) came in at $1.19, surpassing analysts’ expectations of $1.13, and overall revenue was $24.32 billion, higher than the predicted $24.16 billion.
Fourth quarter automotive revenues were $21.3 billion, an increase of 33% year-over-year. However, the company’s gross margin for the automotive business was 25.9%, the lowest it has been in five quarters, and operating cash flow fell 29% year-over-year to $3.28 billion.
In late 2022 and early 2023, Tesla lowered its car prices worldwide, which led to some frustration among customers who had recently purchased vehicles at higher prices. Despite this, CEO Elon Musk announced that Tesla had received the most orders in its history and now receives orders at twice the production rate.
Musk’s remarks during an earnings call on Wednesday drove Tesla’s stock to soar more than 5% in after-hours trading on the New York Stock Exchange. These strong financial results indicate that the company continues to see growth in the electric vehicle market and is well positioned for future success.