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Tesla Q4 2023 Earnings: Tesla Is No Longer Attractive As An Electric Vehicle Manufacturer
By Finance Gnome  •  January 26, 2024
Tesla (TSLA) just reported Q4 revenue and earnings below expectations, and guided for notably lower growth rate in deliveries for 2024. Investors were understandably disappointed, sending the stock plunging by 12% and fell even further in after hours to end ~$182. TSLA stock is now down -26% YTD and down -55% from its peak. Is it time to give up on the Tesla story or could this be a buying opportunity? For Q4 2023, revenues only grew 3% YoY. Non-GAAP EPS plunged -40% YoY. GAAP gross margins came in at 17.6%, down -612 bps YoY, and Operating margin came in at 8.2%, down -784 bps YoY. In addition, total deliveries for the quarter came in at 484k, up 20% YoY which continues to slow from prior quarters. So in a nutshell, slower deliveries, slower revenue growth, declining earnings and margins. Tesla appears to be adversely affected by higher interest rates, as expected. Higher interest rates means higher repayments on car loans. So to attract buyers, Tesla have been cutting prices aggressively....
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By Finance Gnome
Hi, I’m Calvin! I’m a lucky husband and father of two wonderful kids. I work as an aerospace engineer at my 9 to 5. I’ve been investing since 2011, but my investing journey started off pretty terribly. Many of the stocks I bought lost me loads of money, call it tuition fees. Thankfully most of the time, I managed to bail out before losing everything.
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