Tesla (-3.1%) achieved a lower result in the fourth quarter of 2023 than the market expected. Elon Musk’s group achieved sales of $25.17 billion, while the market expected $25.87 billion. In contrast, free cash flow was well above consensus at $US2.1 billion ($1.45 billion).

After-hours EPS was $0.71, slightly below fund analysts’ expectations ($0.73). The reaction was strong: the stock fell about 3%.

It is also worth noting that Tesla is the only technology share in the world Seven greats It is that left behind. It is also the most expensive share, as measured by a price-to-earnings ratio of 54.

Low gross profit margin

Tesla’s gross margin on vehicles fell again this quarter, albeit slightly: 17.6% lower than 17.9%. This is due to price cuts, which continue to occur at a faster pace than cost savings. The automaker still managed to cut costs in the fourth quarter.

Tesla on 2024 guidance: “Our company is currently sandwiched between two major waves of growth: the first started with the global expansion of the Model 3/Y platform and the next wave that we believe will begin with the global expansion of the next generation vehicle platform.

In 2024,… pic.twitter.com/65b4OvipbV

– Sawyer Merritt (@SawyerMerritt) January 24, 2024