Tesla Stock ( NASDAQ:TSLA )
Tesla, Inc. ( NASDAQ:TSLA ) reported fourth-quarter earnings that exceeded expectations on both lines, which is good for shareholders. However, we will discuss some significant negatives in the report and forward guidance in this article.
What Happened?
On Wednesday afternoon, Tesla released its fourth-quarter earnings results.
The company increased its revenue by 37%, which was in line with or slightly ahead of estimates, depending on the source of the consensus estimate. Profit estimates were exceeded, by approximately 7%, which was a strong showing. However, investors should remember that the fourth quarter was not significantly impacted by price cuts, which is why profits could be under pressure in Q1 and beyond when major price cuts will have a greater impact on profitability.
There were some significant findings when delving deeper into the results.
Guidance
The first point to mention is Tesla’s forward guidance. For quite some time, the company has called for a 50% increase in annual deliveries over a multi-year period. While (some) bulls argue that this is easily achievable due to the overall growth of the electric vehicle (EV) market, (some) bears argue that maintaining a very high growth rate for an extended period is impossible due to the law of large numbers, which states that relative growth will eventually slow down.
According to Tesla’s most recent guidance statements from the Q4 report, they are abandoning the 50% -per-year goal, at least for the time being. In 2022, the company delivered 1.31 million vehi...
Click here to read the full article on PressReach.com .Subscribe to the PressReach RSS feeds:
- Featured News RSS feed
- Investing News RSS feed
- Daily Press Releases RSS feed
- Trading Tips RSS feed
- Investing Videos RSS feed
Follow PressReach on Twitter
Follow PressReach on TikTok
Follow PressReach on Instagram
Subscribe to us on Youtube